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Goodyear Tire & Rubber Co (NAS:GT)
EV/EBITDA
6.16 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Goodyear Tire & Rubber Co's enterprise value is $11,369 Mil. Goodyear Tire & Rubber Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $1,847 Mil. Therefore, Goodyear Tire & Rubber Co's EV/EBITDA ratio for today is 6.16.

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, Goodyear Tire & Rubber Co's stock price is $26.15. Goodyear Tire & Rubber Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $8.82. Therefore, Goodyear Tire & Rubber Co's P/E Ratio for today is 2.96.

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


Definition

Goodyear Tire & Rubber Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11369.066/1847
=6.16

Goodyear Tire & Rubber Co's current Enterprise Value is $11,369 Mil.
Goodyear Tire & Rubber Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 258 (Mar. 2014 ) + 582 (Jun. 2014 ) + 589 (Sep. 2014 ) + 418 (Dec. 2014 ) = $1,847 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.

Goodyear Tire & Rubber Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=26.15/8.824
=2.96

Goodyear Tire & Rubber Co's share price for today is $26.15.
Goodyear Tire & Rubber Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was -0.23 (Mar. 2014 ) + 0.76 (Jun. 2014 ) + 0.58 (Sep. 2014 ) + 7.714 (Dec. 2014 ) = $8.82.

* 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.

Goodyear Tire & Rubber Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 4.088.005.503.5810.425.853.924.615.126.50

Goodyear Tire & Rubber Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 5.074.615.365.256.105.126.656.755.806.50
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