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GuruFocus has detected 3 Warning Signs with W R Grace & Co $GRA.
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W R Grace & Co (NYSE:GRA)
EV-to-EBITDA
17.75 (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 $6,174 Mil. W R Grace & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $348 Mil. Therefore, W R Grace & Co's EV/EBITDA ratio for today is 17.75.

GRA' s EV-to-EBITDA Range Over the Past 10 Years
Min: -1.2   Max: 80.8
Current: 17.75

-1.2
80.8

During the past 13 years, the highest EV/EBITDA Ratio of W R Grace & Co was 80.80. The lowest was -1.20. And the median was 6.20.

GRA's EV-to-EBITDA is ranked lower than
75% of the 1247 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 10.65 vs. GRA: 17.75 )

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 $68.49. W R Grace & Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $1.29. Therefore, W R Grace & Co's P/E Ratio for today is 53.09.

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)
=6173.615/347.8
=17.75

W R Grace & Co's current Enterprise Value is $6,174 Mil.
W R Grace & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 76.6 (Mar. 2016 ) + 102.8 (Jun. 2016 ) + 107.5 (Sep. 2016 ) + 60.9 (Dec. 2016 ) = $348 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=68.49/1.29
=53.09

W R Grace & Co's share price for today is $68.49.
W R Grace & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.04 (Mar. 2016 ) + 0.55 (Jun. 2016 ) + 0.56 (Sep. 2016 ) + 0.22 (Dec. 2016 ) = $1.29.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

W R Grace & Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 3.13-0.166.065.055.7126.559.9921.3119.3217.59

W R Grace & Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 11.5621.3126.0837.1575.3419.3216.6917.5217.2817.59
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