Switch to:
W W Grainger Inc (NYSE:GWW)
EV/EBITDA
9.00 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, W W Grainger Inc's enterprise value is $13,716 Mil. W W Grainger Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $1,524 Mil. Therefore, W W Grainger Inc's EV/EBITDA ratio for today is 9.00.

GWW' s EV/EBITDA Range Over the Past 10 Years
Min: 5.4   Max: 14.1
Current: 9.45

5.4
14.1

During the past 13 years, the highest EV/EBITDA Ratio of W W Grainger Inc was 14.10. The lowest was 5.40. And the median was 9.50.

GWW's EV/EBITDA is ranked lower than
51% of the 226 Companies
in the Global Industrial Distribution industry.

( Industry Median: 9.43 vs. GWW: 9.45 )

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, W W Grainger Inc's stock price is $204.08. W W Grainger Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $11.39. Therefore, W W Grainger Inc's P/E Ratio for today is 17.92.

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


Definition

W W Grainger Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=13716.083/1524.075
=9.00

W W Grainger Inc's current Enterprise Value is $13,716 Mil.
W W Grainger Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 324.384 (Dec. 2014 ) + 401.686 (Mar. 2015 ) + 407.396 (Jun. 2015 ) + 390.609 (Sep. 2015 ) = $1,524 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.

W W Grainger Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=204.08/11.39
=17.92

W W Grainger Inc's share price for today is $204.08.
W W Grainger Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 2.15 (Dec. 2014 ) + 3.07 (Mar. 2015 ) + 3.25 (Jun. 2015 ) + 2.92 (Sep. 2015 ) = $11.39.

* 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.

W W Grainger Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 7.648.436.508.259.7311.0511.0312.0011.280.00

W W Grainger Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda 12.3812.0011.7311.8511.2811.2810.4510.359.930.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK