Switch to:
Motorola Solutions Inc (NYSE:MSI)
EV/EBITDA
12.49 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Motorola Solutions Inc's enterprise value is $16,837 Mil. Motorola Solutions Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,348 Mil. Therefore, Motorola Solutions Inc's EV/EBITDA ratio for today is 12.49.

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, Motorola Solutions Inc's stock price is $67.49. Motorola Solutions Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $5.61. Therefore, Motorola Solutions Inc's P/E Ratio for today is 12.03.

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


Definition

Motorola Solutions Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=16837.352/1348
=12.49

Motorola Solutions Inc's current Enterprise Value is $16,837 Mil.
Motorola Solutions Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 715 (Dec. 2013 ) + 236 (Mar. 2014 ) + 163 (Jun. 2014 ) + 234 (Sep. 2014 ) = $1,348 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.

Motorola Solutions Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=67.49/5.608
=12.03

Motorola Solutions Inc's share price for today is $67.49.
Motorola Solutions Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.308 (Dec. 2013 ) + 0.49 (Mar. 2014 ) + 3.22 (Jun. 2014 ) + 0.59 (Sep. 2014 ) = $5.61.

* 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.

Motorola Solutions Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 4.593.792.9430.02-2.0113.955.239.118.9210.57

Motorola Solutions Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 8.628.798.9210.8010.3811.2210.5710.4311.3811.72
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK