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Group 1 Automotive Inc (NYSE:GPI)
EV/EBITDA
13.85 (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 $4,192 Mil. Group 1 Automotive Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $303 Mil. Therefore, Group 1 Automotive Inc's EV/EBITDA ratio for today is 13.85.

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 $77.96. Group 1 Automotive Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $4.65. Therefore, Group 1 Automotive Inc's P/E Ratio for today is 16.80.

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)
=4191.814/302.573
=13.85

Group 1 Automotive Inc's current Enterprise Value is $4,192 Mil.
Group 1 Automotive Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 79.936 (Jun. 2013 ) + 82.034 (Sep. 2013 ) + 70.552 (Dec. 2013 ) + 70.051 (Mar. 2014 ) = $303 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)
=77.96/4.652
=16.76

Group 1 Automotive Inc's share price for today is $77.96.
Group 1 Automotive Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.43 (Jun. 2013 ) + 1.19 (Sep. 2013 ) + 0.842 (Dec. 2013 ) + 1.19 (Mar. 2014 ) = $4.65.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 15.538.6210.529.9752.4611.9312.4810.9912.5713.28

Group 1 Automotive Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 11.5411.1111.6412.5713.1612.6213.4513.2812.0915.37
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