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W R Grace & Co (NYSE:GRA)
EV/EBITDA
16.03 (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 $7,970 Mil. W R Grace & Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $498 Mil. Therefore, W R Grace & Co's EV/EBITDA ratio for today is 16.03.

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 $95.83. W R Grace & Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $3.25. Therefore, W R Grace & Co's P/E Ratio for today is 29.60.

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)
=7970.188/497.9
=16.01

W R Grace & Co's current Enterprise Value is $7,970 Mil.
W R Grace & Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 163.7 (Jun. 2013 ) + 150.2 (Sep. 2013 ) + 58.7 (Dec. 2013 ) + 125.3 (Mar. 2014 ) = $498 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)
=95.83/3.254
=29.45

W R Grace & Co's share price for today is $95.83.
W R Grace & Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.07 (Jun. 2013 ) + 0.89 (Sep. 2013 ) + 0.654 (Dec. 2013 ) + 0.64 (Mar. 2014 ) = $3.25.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 1.810.615.634.260.117.606.376.1433.4714.97

W R Grace & Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 7.756.707.8833.4749.2746.3948.4116.6316.670.00
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