Switch to:
Mercer International Inc (NAS:MERC)
EV/EBITDA
6.25 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mercer International Inc's enterprise value is $1,510 Mil. Mercer International Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $242 Mil. Therefore, Mercer International Inc's EV/EBITDA ratio for today is 6.25.

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, Mercer International Inc's stock price is $14.15. Mercer International Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $1.64. Therefore, Mercer International Inc's P/E Ratio for today is 8.63.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1510.278/241.626
=6.25

Mercer International Inc's current Enterprise Value is $1,510 Mil.
Mercer International Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 44.339 (Jun. 2014 ) + 99.473 (Sep. 2014 ) + 43.644 (Dec. 2014 ) + 54.17 (Mar. 2015 ) = $242 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=14.15/1.64
=8.63

Mercer International Inc's share price for today is $14.15.
Mercer International Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.01 (Jun. 2014 ) + 1.37 (Sep. 2014 ) + 0.05 (Dec. 2014 ) + 0.21 (Mar. 2015 ) = $1.64.

* 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.

Mercer International Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda -316.544.276.0617.7918.824.615.068.3810.655.76

Mercer International Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 8.388.269.279.2410.657.787.985.275.766.57
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