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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
EV/EBITDA
14.03 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Starwood Hotels & Resorts Worldwide Inc's enterprise value is $15,190 Mil. Starwood Hotels & Resorts Worldwide Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,083 Mil. Therefore, Starwood Hotels & Resorts Worldwide Inc's EV/EBITDA ratio for today is 14.03.

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, Starwood Hotels & Resorts Worldwide Inc's stock price is $73.94. Starwood Hotels & Resorts Worldwide Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.78. Therefore, Starwood Hotels & Resorts Worldwide Inc's P/E Ratio for today is 26.56.

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


Definition

Starwood Hotels & Resorts Worldwide Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=15189.692/1083
=14.03

Starwood Hotels & Resorts Worldwide Inc's current Enterprise Value is $15,190 Mil.
Starwood Hotels & Resorts Worldwide Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 264 (Dec. 2013 ) + 236 (Mar. 2014 ) + 321 (Jun. 2014 ) + 262 (Sep. 2014 ) = $1,083 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.

Starwood Hotels & Resorts Worldwide Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=73.94/2.784
=26.56

Starwood Hotels & Resorts Worldwide Inc's share price for today is $73.94.
Starwood Hotels & Resorts Worldwide Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.674 (Dec. 2013 ) + 0.72 (Mar. 2014 ) + 0.8 (Jun. 2014 ) + 0.59 (Sep. 2014 ) = $2.78.

* 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.

Starwood Hotels & Resorts Worldwide Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 12.9311.9512.819.738.0932.2016.7513.0912.0713.56

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 11.5412.0112.0713.1312.3812.2513.5614.3114.6015.72
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