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Microsoft Corp (NAS:MSFT)
EV/EBITDA
9.55 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Microsoft Corp's enterprise value is $319,595 Mil. Microsoft Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $33,629 Mil. Therefore, Microsoft Corp's EV/EBITDA ratio for today is 9.55.

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, Microsoft Corp's stock price is $46.35. Microsoft Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.63. Therefore, Microsoft Corp's P/E Ratio for today is 17.60.

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


Definition

Microsoft Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=319594.500/33629
=9.50

Microsoft Corp's current Enterprise Value is $319,595 Mil.
Microsoft Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 7480 (Sep. 2013 ) + 9274 (Dec. 2013 ) + 8387 (Mar. 2014 ) + 8488 (Jun. 2014 ) = $33,629 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.

Microsoft Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=46.35/2.631
=17.62

Microsoft Corp's share price for today is $46.35.
Microsoft Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.62 (Sep. 2013 ) + 0.78 (Dec. 2013 ) + 0.68 (Mar. 2014 ) + 0.551 (Jun. 2014 ) = $2.63.

* 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.

Microsoft Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda 14.8111.7112.728.768.305.665.688.017.248.37

Microsoft Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 6.898.018.237.157.077.246.597.628.428.37
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