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Mercer International Inc (NAS:MERC)
EV/EBITDA
6.10 (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 $1,453 Mil. Mercer International Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $238 Mil. Therefore, Mercer International Inc's EV/EBITDA ratio for today is 6.10.

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 $12.82. Mercer International Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.57. Therefore, Mercer International Inc's P/E Ratio for today is 8.15.

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)
=1452.684/238.128
=6.10

Mercer International Inc's current Enterprise Value is $1,453 Mil.
Mercer International Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 32.052 (Dec. 2013 ) + 62.264 (Mar. 2014 ) + 44.339 (Jun. 2014 ) + 99.473 (Sep. 2014 ) = $238 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)
=12.82/1.573
=8.15

Mercer International Inc's share price for today is $12.82.
Mercer International Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.177 (Dec. 2013 ) + 0.37 (Mar. 2014 ) + 0.01 (Jun. 2014 ) + 1.37 (Sep. 2014 ) = $1.57.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 37.65-316.544.276.0617.7918.824.615.068.3810.65

Mercer International Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 7.239.368.388.269.279.2410.657.787.985.27
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