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MasterCard Inc (NYSE:MA)
EV/EBITDA
18.50 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, MasterCard Inc's enterprise value is $102,321 Mil. MasterCard Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $5,532 Mil. Therefore, MasterCard Inc's EV/EBITDA ratio for today is 18.50.

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 Inc's stock price is $93.48. MasterCard Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $3.25. Therefore, MasterCard Inc's P/E Ratio for today is 28.75.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=102321.324/5532
=18.50

MasterCard Inc's current Enterprise Value is $102,321 Mil.
MasterCard Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 1469 (Jun. 2014 ) + 1512 (Sep. 2014 ) + 1107 (Dec. 2014 ) + 1444 (Mar. 2015 ) = $5,532 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 Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=93.48/3.251
=28.75

MasterCard Inc's share price for today is $93.48.
MasterCard Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.8 (Jun. 2014 ) + 0.87 (Sep. 2014 ) + 0.691 (Dec. 2014 ) + 0.89 (Mar. 2015 ) = $3.25.

* 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 Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.0024.2714.03-97.8410.427.9513.4812.5819.5817.36

MasterCard Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 12.5813.4813.4115.0219.5816.4715.5914.9417.3617.08
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