Switch to:
Masco Corp (NYSE:MAS)
EV/EBITDA
14.06 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Masco Corp's enterprise value is $11,570 Mil. Masco Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $823 Mil. Therefore, Masco Corp's EV/EBITDA ratio for today is 14.06.

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, Masco Corp's stock price is $23.50. Masco Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $2.37. Therefore, Masco Corp's P/E Ratio for today is 9.93.

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


Definition

Masco Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11570.090/823
=14.06

Masco Corp's current Enterprise Value is $11,570 Mil.
Masco Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 246 (Jun. 2014 ) + 209 (Sep. 2014 ) + 196 (Dec. 2014 ) + 172 (Mar. 2015 ) = $823 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.

Masco Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=23.50/2.367
=9.93

Masco Corp's share price for today is $23.50.
Masco Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.39 (Jun. 2014 ) + 1.51 (Sep. 2014 ) + 0.287 (Dec. 2014 ) + 0.18 (Mar. 2015 ) = $2.37.

* 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.

Masco Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 9.2513.079.91254.42102.46-14.27-28.5825.3914.7013.65

Masco Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 25.3928.3819.4316.6114.7014.8313.4314.2313.6514.12
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK