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McCormick & Company Inc (NYSE:MKC)
EV/EBITDA
14.70 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, McCormick & Company Inc's enterprise value is $10,391 Mil. McCormick & Company Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $707 Mil. Therefore, McCormick & Company Inc's EV/EBITDA ratio for today is 14.70.

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, McCormick & Company Inc's stock price is $75.25. McCormick & Company Inc's earnings per share for the trailing twelve months (TTM) ended in Nov. 2014 was $3.34. Therefore, McCormick & Company Inc's P/E Ratio for today is 22.54.

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


Definition

McCormick & Company Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10391.287/706.8
=14.70

McCormick & Company Inc's current Enterprise Value is $10,391 Mil.
McCormick & Company Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 151.6 (Feb. 2014 ) + 148.7 (May. 2014 ) + 182.2 (Aug. 2014 ) + 224.3 (Nov. 2014 ) = $707 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.

McCormick & Company Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=75.25/3.338
=22.54

McCormick & Company Inc's share price for today is $75.25.
McCormick & Company Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Nov. 2014 was 0.62 (Feb. 2014 ) + 0.64 (May. 2014 ) + 0.94 (Aug. 2014 ) + 1.138 (Nov. 2014 ) = $3.34.

* 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.

McCormick & Company Inc Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
ev2ebitda 11.2615.6312.4310.5610.0910.9911.9814.0915.5414.93

McCormick & Company Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev2ebitda 13.8314.0914.7215.3914.8415.5414.6015.6514.9714.93
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