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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Masco Corp's enterprise value is $11,094 Mil. Masco Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $800 Mil. Therefore, Masco Corp's EV/EBITDA ratio for today is 13.87.

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 $26.19. Masco Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $2.40. Therefore, Masco Corp's P/E Ratio for today is 10.93.

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)
=11093.558/800
=13.87

Masco Corp's current Enterprise Value is $11,094 Mil.
Masco Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 149 (Mar. 2014 ) + 246 (Jun. 2014 ) + 209 (Sep. 2014 ) + 196 (Dec. 2014 ) = $800 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)
=26.19/2.397
=10.93

Masco Corp's share price for today is $26.19.
Masco Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.21 (Mar. 2014 ) + 0.39 (Jun. 2014 ) + 1.51 (Sep. 2014 ) + 0.287 (Dec. 2014 ) = $2.40.

* 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 9.2513.079.91254.42114.88-13.30-28.5828.0515.0513.65

Masco Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda -34.0028.0531.0620.4417.3215.0515.0413.5914.2913.65
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)
FEEDBACK