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Mead Johnson Nutrition Co (NYSE:MJN)
EV/EBITDA
18.34 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mead Johnson Nutrition Co's enterprise value is $18,921 Mil. Mead Johnson Nutrition Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,075 Mil. Therefore, Mead Johnson Nutrition Co's EV/EBITDA ratio for today is 18.34.

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, Mead Johnson Nutrition Co's stock price is $91.44. Mead Johnson Nutrition Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.38. Therefore, Mead Johnson Nutrition Co's P/E Ratio for today is 27.00.

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


Definition

Mead Johnson Nutrition Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=18920.705/1074.9
=17.60

Mead Johnson Nutrition Co's current Enterprise Value is $18,921 Mil.
Mead Johnson Nutrition Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 261.3 (Sep. 2013 ) + 228.4 (Dec. 2013 ) + 315.6 (Mar. 2014 ) + 269.6 (Jun. 2014 ) = $1,075 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.

Mead Johnson Nutrition Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=91.44/3.384
=27.02

Mead Johnson Nutrition Co's share price for today is $91.44.
Mead Johnson Nutrition Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.79 (Sep. 2013 ) + 0.754 (Dec. 2013 ) + 1 (Mar. 2014 ) + 0.84 (Jun. 2014 ) = $3.38.

* 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.

Mead Johnson Nutrition Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.000.000.000.0012.9518.3417.3414.7216.47

Mead Johnson Nutrition Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 20.2718.7617.4314.7216.6716.9314.9616.4716.0217.83
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