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Garmin Ltd (NAS:GRMN)
EV/EBITDA
9.76 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Garmin Ltd's enterprise value is $7,496 Mil. Garmin Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $768 Mil. Therefore, Garmin Ltd's EV/EBITDA ratio for today is 9.76.

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, Garmin Ltd's stock price is $46.19. Garmin Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $1.87. Therefore, Garmin Ltd's P/E Ratio for today is 24.66.

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


Definition

Garmin Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7495.771/767.642
=9.76

Garmin Ltd's current Enterprise Value is $7,496 Mil.
Garmin Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 138.781 (Mar. 2014 ) + 237.8 (Jun. 2014 ) + 193.611 (Sep. 2014 ) + 197.45 (Dec. 2014 ) = $768 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.

Garmin Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=46.19/1.873
=24.66

Garmin Ltd's share price for today is $46.19.
Garmin Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.61 (Mar. 2014 ) + 0.93 (Jun. 2014 ) + -0.76 (Sep. 2014 ) + 1.093 (Dec. 2014 ) = $1.87.

* 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.

Garmin Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 19.2418.5719.483.195.577.049.369.4811.7711.42

Garmin Ltd Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 8.679.487.699.1411.8911.7713.7013.9711.3511.42
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