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Group 1 Automotive Inc (NYSE:GPI)
EV/EBITDA
16.35 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Group 1 Automotive Inc's enterprise value is $4,495 Mil. Group 1 Automotive Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $275 Mil. Therefore, Group 1 Automotive Inc's EV/EBITDA ratio for today is 16.35.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Group 1 Automotive Inc's stock price is $85.21. Group 1 Automotive Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $3.64. Therefore, Group 1 Automotive Inc's P/E Ratio for today is 23.44.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Group 1 Automotive Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4495.067/274.97
=16.35

Group 1 Automotive Inc's current Enterprise Value is $4,495 Mil.
Group 1 Automotive Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 70.051 (Mar. 2014 ) + 59.276 (Jun. 2014 ) + 78.313 (Sep. 2014 ) + 67.33 (Dec. 2014 ) = $275 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Group 1 Automotive Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=85.21/3.636
=23.44

Group 1 Automotive Inc's share price for today is $85.21.
Group 1 Automotive Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.19 (Mar. 2014 ) + 0.62 (Jun. 2014 ) + 1.03 (Sep. 2014 ) + 0.796 (Dec. 2014 ) = $3.64.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Group 1 Automotive Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 8.6210.529.9752.2811.9212.4810.9912.5713.2616.75

Group 1 Automotive Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 11.6412.5713.1612.6213.4513.2612.0915.4314.3816.75
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