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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, MasterCard Inc's enterprise value is $99,411 Mil. MasterCard Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $5,448 Mil. Therefore, MasterCard Inc's EV/EBITDA ratio for today is 18.25.

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 $90.72. MasterCard Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $3.09. Therefore, MasterCard Inc's P/E Ratio for today is 29.35.

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)
=99410.976/5448
=18.25

MasterCard Inc's current Enterprise Value is $99,411 Mil.
MasterCard Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 1360 (Mar. 2014 ) + 1469 (Jun. 2014 ) + 1512 (Sep. 2014 ) + 1107 (Dec. 2014 ) = $5,448 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)
=90.72/3.091
=29.35

MasterCard Inc's share price for today is $90.72.
MasterCard Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.73 (Mar. 2014 ) + 0.8 (Jun. 2014 ) + 0.87 (Sep. 2014 ) + 0.691 (Dec. 2014 ) = $3.09.

* 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.

MasterCard Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.0024.2714.03-97.8410.427.9513.4812.5819.5817.36

MasterCard Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 14.8612.5813.4813.4115.0219.5816.4715.5914.9417.36
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