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Mohawk Industries, Inc. (NYSE:MHK)
EV/EBITDA
14.00 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mohawk Industries, Inc.'s enterprise value is $12,008 Mil. Mohawk Industries, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $847 Mil. Therefore, Mohawk Industries, Inc.'s EV/EBITDA ratio for today is 14.00.

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, Mohawk Industries, Inc.'s stock price is $134.82. Mohawk Industries, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $4.81. Therefore, Mohawk Industries, Inc.'s P/E Ratio for today is 28.20.

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


Definition

Mohawk Industries, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=12008.006/846.688
=14.18

Mohawk Industries, Inc.'s current Enterprise Value is $12,008 Mil.
Mohawk Industries, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 140.804 (Mar. 2013 ) + 214.938 (Jun. 2013 ) + 256.285 (Sep. 2013 ) + 234.661 (Dec. 2013 ) = $847 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.

Mohawk Industries, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=134.82/4.812
=28.02

Mohawk Industries, Inc.'s share price for today is $134.82.
Mohawk Industries, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.72 (Mar. 2013 ) + 1.16 (Jun. 2013 ) + 1.63 (Sep. 2013 ) + 1.302 (Dec. 2013 ) = $4.81.

* 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.

Mohawk Industries, Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.2511.706.927.600.0013.018.349.0010.8615.39

Mohawk Industries, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 6.959.009.719.8910.3910.8613.8715.2815.2515.39
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