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GuruFocus has detected 3 Warning Signs with Goodyear Tire & Rubber Co $GT.
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Goodyear Tire & Rubber Co (NAS:GT)
EV-to-EBITDA
5.91 (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 $13,619 Mil. Goodyear Tire & Rubber Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $2,306 Mil. Therefore, Goodyear Tire & Rubber Co's EV/EBITDA ratio for today is 5.91.

GT' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.5   Max: 100.2
Current: 5.91

3.5
100.2

During the past 13 years, the highest EV/EBITDA Ratio of Goodyear Tire & Rubber Co was 100.20. The lowest was 3.50. And the median was 5.95.

GT's EV-to-EBITDA is ranked higher than
74% of the 1120 Companies
in the Global Rubber & Plastics industry.

( Industry Median: 9.44 vs. GT: 5.91 )

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 $35.94. Goodyear Tire & Rubber Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $4.74. Therefore, Goodyear Tire & Rubber Co's P/E Ratio for today is 7.58.

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)
=13619.383/2306
=5.91

Goodyear Tire & Rubber Co's current Enterprise Value is $13,619 Mil.
Goodyear Tire & Rubber Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 532 (Mar. 2016 ) + 586 (Jun. 2016 ) + 581 (Sep. 2016 ) + 607 (Dec. 2016 ) = $2,306 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=35.94/4.74
=7.58

Goodyear Tire & Rubber Co's share price for today is $35.94.
Goodyear Tire & Rubber Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.68 (Mar. 2016 ) + 0.75 (Jun. 2016 ) + 1.19 (Sep. 2016 ) + 2.12 (Dec. 2016 ) = $4.74.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Goodyear Tire & Rubber Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.174.0810.626.044.014.685.156.527.565.35

Goodyear Tire & Rubber Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 5.856.525.425.635.187.568.547.499.265.35
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