Switch to:
W R Grace & Co (NYSE:GRA)
EV/EBITDA
15.97 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, W R Grace & Co's enterprise value is $8,639 Mil. W R Grace & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $541 Mil. Therefore, W R Grace & Co's EV/EBITDA ratio for today is 15.97.

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, W R Grace & Co's stock price is $98.86. W R Grace & Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $3.61. Therefore, W R Grace & Co's P/E Ratio for today is 27.40.

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


Definition

W R Grace & Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8638.700/541.1
=15.97

W R Grace & Co's current Enterprise Value is $8,639 Mil.
W R Grace & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 133.5 (Mar. 2014 ) + 174.1 (Jun. 2014 ) + 168.6 (Sep. 2014 ) + 64.9 (Dec. 2014 ) = $541 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.

W R Grace & Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=98.86/3.608
=27.40

W R Grace & Co's share price for today is $98.86.
W R Grace & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.64 (Mar. 2014 ) + 1.77 (Jun. 2014 ) + 0.99 (Sep. 2014 ) + 0.208 (Dec. 2014 ) = $3.61.

* 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.

W R Grace & Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.605.634.260.117.606.376.1433.4712.8415.71

W R Grace & Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 7.8833.4739.0035.1634.4712.8415.6514.9715.2915.71
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK