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JC Penney Co Inc (NYSE:JCP)
EV/EBITDA
53.23 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, JC Penney Co Inc's enterprise value is $6,707 Mil. JC Penney Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $126 Mil. Therefore, JC Penney Co Inc's EV/EBITDA ratio for today is 53.23.

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, JC Penney Co Inc's stock price is $6.50. JC Penney Co Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $-2.22. Therefore, JC Penney Co Inc's P/E Ratio for today is .

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


Definition

JC Penney Co Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6706.600/126
=53.23

JC Penney Co Inc's current Enterprise Value is $6,707 Mil.
JC Penney Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 23 (Jan. 2014 ) + -89 (Apr. 2014 ) + 90 (Jul. 2014 ) + 102 (Oct. 2014 ) = $126 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.

JC Penney Co Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=6.50/-2.215
=

JC Penney Co Inc's share price for today is $6.50.
JC Penney Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.115 (Jan. 2014 ) + -1.15 (Apr. 2014 ) + -0.56 (Jul. 2014 ) + -0.62 (Oct. 2014 ) = $-2.22.

* 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.

JC Penney Co Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebitda 6.606.807.775.103.045.396.1120.47-8.45-7.16

JC Penney Co Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda -51.94-65.65-8.45-6.48-6.16-4.20-7.16-12.53-33.4255.86
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