Switch to:
Coca-Cola Co (NYSE:KO)
EV/EBITDA
17.03 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Coca-Cola Co's enterprise value is $202,411 Mil. Coca-Cola Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $11,883 Mil. Therefore, Coca-Cola Co's EV/EBITDA ratio for today is 17.03.

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, Coca-Cola Co's stock price is $41.23. Coca-Cola Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $1.58. Therefore, Coca-Cola Co's P/E Ratio for today is 26.03.

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


Definition

Coca-Cola Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=202410.872/11883
=17.03

Coca-Cola Co's current Enterprise Value is $202,411 Mil.
Coca-Cola Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 3985 (Jun. 2014 ) + 3283 (Sep. 2014 ) + 1714 (Dec. 2014 ) + 2901 (Mar. 2015 ) = $11,883 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.

Coca-Cola Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=41.23/1.584
=26.03

Coca-Cola Co's share price for today is $41.23.
Coca-Cola Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.58 (Jun. 2014 ) + 0.48 (Sep. 2014 ) + 0.174 (Dec. 2014 ) + 0.35 (Mar. 2015 ) = $1.58.

* 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.

Coca-Cola Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 12.3214.8815.4711.9312.769.9612.5212.5814.2917.42

Coca-Cola Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 12.5814.2314.1913.1014.2913.7014.9715.7917.4217.00
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