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Lowe's Companies Inc (NYSE:LOW)
EV/EBITDA
11.74 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Lowe's Companies Inc's enterprise value is $80,160 Mil. Lowe's Companies Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2016 was $6,828 Mil. Therefore, Lowe's Companies Inc's EV/EBITDA ratio for today is 11.74.

LOW' s EV/EBITDA Range Over the Past 10 Years
Min: 4.6   Max: 12.9
Current: 11.71

4.6
12.9

During the past 13 years, the highest EV/EBITDA Ratio of Lowe's Companies Inc was 12.90. The lowest was 4.60. And the median was 8.30.

LOW's EV/EBITDA is ranked lower than
54% of the 765 Companies
in the Global Home Improvement Stores industry.

( Industry Median: 10.83 vs. LOW: 11.71 )

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, Lowe's Companies Inc's stock price is $76.02. Lowe's Companies Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2016 was $2.71. Therefore, Lowe's Companies Inc's P/E Ratio for today is 28.03.

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


Definition

Lowe's Companies Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=80160.288/6828
=11.74

Lowe's Companies Inc's current Enterprise Value is $80,160 Mil.
Lowe's Companies Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2016 was 1623 (Apr. 2015 ) + 2374 (Jul. 2015 ) + 1593 (Oct. 2015 ) + 1238 (Jan. 2016 ) = $6,828 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.

Lowe's Companies Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=76.02/2.712
=28.03

Lowe's Companies Inc's share price for today is $76.02.
Lowe's Companies Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2016 was 0.7 (Apr. 2015 ) + 1.2 (Jul. 2015 ) + 0.8 (Oct. 2015 ) + 0.012 (Jan. 2016 ) = $2.71.

* 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.

Lowe's Companies Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
ev2ebitda 8.547.195.897.337.428.139.7410.1011.4311.30

Lowe's Companies Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ev2ebitda 10.6910.109.659.3610.7711.4311.1010.7511.0011.30
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