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Level 3 Communications Inc (NYSE:LVLT)
EV/EBITDA
12.10 (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 $18,054 Mil. Level 3 Communications Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $1,533 Mil. Therefore, Level 3 Communications Inc's EV/EBITDA ratio for today is 12.10.

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 $43.40. Level 3 Communications Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $0.33. Therefore, Level 3 Communications Inc's P/E Ratio for today is 130.80.

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)
=18054.012/1533
=11.78

Level 3 Communications Inc's current Enterprise Value is $18,054 Mil.
Level 3 Communications Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 353 (Jun. 2013 ) + 361 (Sep. 2013 ) + 365 (Dec. 2013 ) + 454 (Mar. 2014 ) = $1,533 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)
=43.40/0.332
=130.72

Level 3 Communications Inc's share price for today is $43.40.
Level 3 Communications Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was -0.11 (Jun. 2013 ) + -0.09 (Sep. 2013 ) + 0.062 (Dec. 2013 ) + 0.47 (Mar. 2014 ) = $0.33.

* 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 9.8814.9318.9827.175.719.1110.0415.0511.5510.99

Level 3 Communications Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 16.4713.3713.2611.5510.7610.6010.5210.9911.060.00
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