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MasterCard Incorporated (NYSE:MA)
EV/EBITDA
16.17 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, MasterCard Incorporated's enterprise value is $80,752 Mil. MasterCard Incorporated's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $4,778 Mil. Therefore, MasterCard Incorporated's EV/EBITDA ratio for today is 16.17.

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, MasterCard Incorporated's stock price is $74.13. MasterCard Incorporated's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $2.56. Therefore, MasterCard Incorporated's P/E Ratio for today is 28.80.

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


Definition

MasterCard Incorporated's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=80752.264/4778
=16.90

MasterCard Incorporated's current Enterprise Value is $80,752 Mil.
MasterCard Incorporated's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 1169 (Mar. 2013 ) + 1299 (Jun. 2013 ) + 1321 (Sep. 2013 ) + 989 (Dec. 2013 ) = $4,778 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.

MasterCard Incorporated's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=74.13/2.559
=28.97

MasterCard Incorporated's share price for today is $74.13.
MasterCard Incorporated's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.623 (Mar. 2013 ) + 0.696 (Jun. 2013 ) + 0.727 (Sep. 2013 ) + 0.513 (Dec. 2013 ) = $2.56.

* 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.

MasterCard Incorporated Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.0024.2714.030.0010.427.9513.4812.5819.38

MasterCard Incorporated Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 9.5913.4814.7014.5114.8612.5813.4813.4115.0119.38
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