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GuruFocus has detected 2 Warning Signs with Masco Corp $MAS.
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Masco Corp (NYSE:MAS)
EV-to-EBITDA
12.37 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Masco Corp's enterprise value is $13,099 Mil. Masco Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $1,059 Mil. Therefore, Masco Corp's EV/EBITDA ratio for today is 12.37.

MAS' s EV-to-EBITDA Range Over the Past 10 Years
Min: -118.9   Max: 240.7
Current: 12.37

-118.9
240.7

During the past 13 years, the highest EV/EBITDA Ratio of Masco Corp was 240.70. The lowest was -118.90. And the median was 12.25.

MAS's EV-to-EBITDA is ranked lower than
60% of the 659 Companies
in the Global Building Materials industry.

( Industry Median: 10.49 vs. MAS: 12.37 )

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 $34.02. Masco Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $1.47. Therefore, Masco Corp's P/E Ratio for today is 23.14.

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)
=13099.297/1059
=12.37

Masco Corp's current Enterprise Value is $13,099 Mil.
Masco Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 233 (Mar. 2016 ) + 340 (Jun. 2016 ) + 270 (Sep. 2016 ) + 216 (Dec. 2016 ) = $1,059 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=34.02/1.47
=23.14

Masco Corp's share price for today is $34.02.
Masco Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.32 (Mar. 2016 ) + 0.45 (Jun. 2016 ) + 0.4 (Sep. 2016 ) + 0.3 (Dec. 2016 ) = $1.47.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Masco Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 9.05237.1994.55-13.19-41.9423.2514.6713.1212.5711.88

Masco Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 14.9813.1214.0712.6512.4612.5713.0511.9812.7011.88
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