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Goodyear Tire & Rubber Co (NAS:GT)
EV/EBITDA
5.93 (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 $11,562 Mil. Goodyear Tire & Rubber Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $1,951 Mil. Therefore, Goodyear Tire & Rubber Co's EV/EBITDA ratio for today is 5.93.

GT' s EV/EBITDA Range Over the Past 10 Years
Min: 2.9   Max: 35.8
Current: 5.75

2.9
35.8

During the past 13 years, the highest EV/EBITDA Ratio of Goodyear Tire & Rubber Co was 35.80. The lowest was 2.90. And the median was 7.00.

GT's EV/EBITDA is ranked higher than
73% of the 1068 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 8.84 vs. GT: 5.75 )

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, Goodyear Tire & Rubber Co's stock price is $26.34. Goodyear Tire & Rubber Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $10.22. Therefore, Goodyear Tire & Rubber Co's P/E Ratio for today is 2.58.

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)
=11561.860/1951
=5.93

Goodyear Tire & Rubber Co's current Enterprise Value is $11,562 Mil.
Goodyear Tire & Rubber Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 0 (Dec. 2014 ) + 634 (Mar. 2015 ) + 611 (Jun. 2015 ) + 706 (Sep. 2015 ) = $1,951 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)
=26.34/10.224
=2.58

Goodyear Tire & Rubber Co's share price for today is $26.34.
Goodyear Tire & Rubber Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 7.714 (Dec. 2014 ) + 0.82 (Mar. 2015 ) + 0.7 (Jun. 2015 ) + 0.99 (Sep. 2015 ) = $10.22.

* 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 5.238.708.313.2430.306.484.665.757.148.40

Goodyear Tire & Rubber Co Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
ev2ebitda 6.437.397.149.399.448.028.406.606.816.18
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