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Southwest Airlines Co (NYSE:LUV)
EV/EBITDA
10.99 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Southwest Airlines Co's enterprise value is $31,456 Mil. Southwest Airlines Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $2,861 Mil. Therefore, Southwest Airlines Co's EV/EBITDA ratio for today is 10.99.

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, Southwest Airlines Co's stock price is $46.83. Southwest Airlines Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $1.65. Therefore, Southwest Airlines Co's P/E Ratio for today is 28.38.

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


Definition

Southwest Airlines Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=31455.800/2861
=10.99

Southwest Airlines Co's current Enterprise Value is $31,456 Mil.
Southwest Airlines Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 491 (Mar. 2014 ) + 1002 (Jun. 2014 ) + 788 (Sep. 2014 ) + 580 (Dec. 2014 ) = $2,861 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.

Southwest Airlines Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=46.83/1.65
=28.38

Southwest Airlines Co's share price for today is $46.83.
Southwest Airlines Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.22 (Mar. 2014 ) + 0.67 (Jun. 2014 ) + 0.48 (Sep. 2014 ) + 0.28 (Dec. 2014 ) = $1.65.

* 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.

Southwest Airlines Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 9.128.414.778.329.926.276.184.856.029.90

Southwest Airlines Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 3.654.856.085.444.906.026.676.257.699.90
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