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Medtronic Inc (NYSE:MDT)
EV/EBITDA
15.17 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Medtronic Inc's enterprise value is $71,189 Mil. Medtronic Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $4,779 Mil. Therefore, Medtronic Inc's EV/EBITDA ratio for today is 15.17.

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, Medtronic Inc's stock price is $73.48. Medtronic Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $2.89. Therefore, Medtronic Inc's P/E Ratio for today is 25.40.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=71188.934/4779
=14.90

Medtronic Inc's current Enterprise Value is $71,189 Mil.
Medtronic Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 1261 (Jan. 2014 ) + 799 (Apr. 2014 ) + 1395 (Jul. 2014 ) + 1324 (Oct. 2014 ) = $4,779 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.

Medtronic Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=73.48/2.893
=25.40

Medtronic Inc's share price for today is $73.48.
Medtronic Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.75 (Jan. 2014 ) + 0.443 (Apr. 2014 ) + 0.87 (Jul. 2014 ) + 0.83 (Oct. 2014 ) = $2.89.

* 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.

Medtronic Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev2ebitda 20.5116.7414.6016.0611.6610.4410.927.988.6011.44

Medtronic Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 9.3710.1610.988.6010.019.819.8411.4412.3613.66
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