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Level 3 Communications Inc (NYSE:LVLT)
EV/EBITDA
13.96 (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 $26,524 Mil. Level 3 Communications Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $1,900 Mil. Therefore, Level 3 Communications Inc's EV/EBITDA ratio for today is 13.96.

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 $45.12. Level 3 Communications Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $0.87. Therefore, Level 3 Communications Inc's P/E Ratio for today is 51.68.

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)
=26524.203/1900
=13.96

Level 3 Communications Inc's current Enterprise Value is $26,524 Mil.
Level 3 Communications Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 439 (Sep. 2014 ) + 408 (Dec. 2014 ) + 595 (Mar. 2015 ) + 458 (Jun. 2015 ) = $1,900 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)
=45.12/0.873
=51.68

Level 3 Communications Inc's share price for today is $45.12.
Level 3 Communications Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.35 (Sep. 2014 ) + 0.213 (Dec. 2014 ) + 0.35 (Mar. 2015 ) + -0.04 (Jun. 2015 ) = $0.87.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 15.5719.0027.185.659.1110.0415.0511.5511.2616.24

Level 3 Communications Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 10.7610.6010.5211.2611.1111.4911.7916.2416.0015.34
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