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Goodyear Tire & Rubber Co (NAS:GT)
EV/EBITDA
7.93 (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 $12,819 Mil. Goodyear Tire & Rubber Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $1,616 Mil. Therefore, Goodyear Tire & Rubber Co's EV/EBITDA ratio for today is 7.93.

GT' s EV/EBITDA Range Over the Past 10 Years
Min: 3.5   Max: 95
Current: 7.74

3.5
95

During the past 13 years, the highest EV/EBITDA Ratio of Goodyear Tire & Rubber Co was 95.00. The lowest was 3.50. And the median was 5.80.

GT's EV/EBITDA is ranked higher than
58% of the 1250 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 8.62 vs. GT: 7.74 )

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 $28.56. Goodyear Tire & Rubber Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $0.96. Therefore, Goodyear Tire & Rubber Co's P/E Ratio for today is 29.75.

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)
=12819.378/1616
=7.93

Goodyear Tire & Rubber Co's current Enterprise Value is $12,819 Mil.
Goodyear Tire & Rubber Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 611 (Jun. 2015 ) + 706 (Sep. 2015 ) + -233 (Dec. 2015 ) + 532 (Mar. 2016 ) = $1,616 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)
=28.56/0.96
=29.75

Goodyear Tire & Rubber Co's share price for today is $28.56.
Goodyear Tire & Rubber Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 0.7 (Jun. 2015 ) + 0.99 (Sep. 2015 ) + -1.41 (Dec. 2015 ) + 0.68 (Mar. 2016 ) = $0.96.

* 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 8.016.174.0810.626.044.014.685.156.587.34

Goodyear Tire & Rubber Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 5.156.686.795.856.585.475.695.247.708.66
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