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McCormick & Company, Inc. (NYSE:MKC)
EV/EBITDA
15.55 (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 $10,472 Mil. McCormick & Company, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $672 Mil. Therefore, McCormick & Company, Inc.'s EV/EBITDA ratio for today is 15.55.

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 $70.98. McCormick & Company, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Feb. 2014 was $2.95. Therefore, McCormick & Company, Inc.'s P/E Ratio for today is 24.00.

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)
=10472.136/671.5
=15.60

McCormick & Company, Inc.'s current Enterprise Value is $10,472 Mil.
McCormick & Company, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 142.3 (May. 2013 ) + 173.9 (Aug. 2013 ) + 203.7 (Nov. 2013 ) + 151.6 (Feb. 2014 ) = $672 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)
=70.98/2.947
=24.09

McCormick & Company, Inc.'s share price for today is $70.98.
McCormick & Company, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2014 was 0.59 (May. 2013 ) + 0.78 (Aug. 2013 ) + 0.957 (Nov. 2013 ) + 0.62 (Feb. 2014 ) = $2.95.

* 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

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
ev2ebitda 13.6611.2615.6312.4310.5610.0910.9911.9814.0915.54

McCormick & Company, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebitda 11.9812.3713.2413.8314.0914.7215.3914.8415.5414.64
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