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Level 3 Communications Inc (NYSE:LVLT)
EV/EBITDA
15.34 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Level 3 Communications Inc's enterprise value is $25,417 Mil. Level 3 Communications Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,657 Mil. Therefore, Level 3 Communications Inc's EV/EBITDA ratio for today is 15.34.

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, Level 3 Communications Inc's stock price is $49.97. Level 3 Communications Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.09. Therefore, Level 3 Communications Inc's P/E Ratio for today is 45.80.

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


Definition

Level 3 Communications Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=25416.983/1657
=15.34

Level 3 Communications Inc's current Enterprise Value is $25,417 Mil.
Level 3 Communications Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 365 (Dec. 2013 ) + 454 (Mar. 2014 ) + 399 (Jun. 2014 ) + 439 (Sep. 2014 ) = $1,657 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.

Level 3 Communications Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=49.97/1.092
=45.76

Level 3 Communications Inc's share price for today is $49.97.
Level 3 Communications Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.062 (Dec. 2013 ) + 0.47 (Mar. 2014 ) + 0.21 (Jun. 2014 ) + 0.35 (Sep. 2014 ) = $1.09.

* 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.

Level 3 Communications Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.2314.1419.0127.305.809.1110.0415.0511.5511.26

Level 3 Communications Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 13.3713.2611.5510.7610.6010.5211.2611.1111.4911.82
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