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W W Grainger Inc (NYSE:GWW)
EV/EBITDA
10.46 (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 $16,236 Mil. W W Grainger Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $1,553 Mil. Therefore, W W Grainger Inc's EV/EBITDA ratio for today is 10.46.

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 $235.81. W W Grainger Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $11.48. Therefore, W W Grainger Inc's P/E Ratio for today is 20.55.

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)
=16235.878/1552.805
=10.46

W W Grainger Inc's current Enterprise Value is $16,236 Mil.
W W Grainger Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 400.252 (Mar. 2014 ) + 389.202 (Jun. 2014 ) + 438.967 (Sep. 2014 ) + 324.384 (Dec. 2014 ) = $1,553 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)
=235.81/11.477
=20.55

W W Grainger Inc's share price for today is $235.81.
W W Grainger Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 3.07 (Mar. 2014 ) + 2.94 (Jun. 2014 ) + 3.3 (Sep. 2014 ) + 2.167 (Dec. 2014 ) = $11.48.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 9.057.838.436.508.259.7311.0511.0312.0011.41

W W Grainger Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 11.6611.0311.8412.8312.3812.0011.7311.8511.2811.41
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