Switch to:
Motorola Solutions Inc (NYSE:MSI)
EV/EBITDA
11.49 (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 $15,301 Mil. Motorola Solutions Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,332 Mil. Therefore, Motorola Solutions Inc's EV/EBITDA ratio for today is 11.49.

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 $62.57. Motorola Solutions Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $6.18. Therefore, Motorola Solutions Inc's P/E Ratio for today is 10.10.

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)
=15301.474/1332
=11.49

Motorola Solutions Inc's current Enterprise Value is $15,301 Mil.
Motorola Solutions Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 450 (Sep. 2013 ) + 483 (Dec. 2013 ) + 236 (Mar. 2014 ) + 163 (Jun. 2014 ) = $1,332 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)
=62.57/6.178
=10.13

Motorola Solutions Inc's share price for today is $62.57.
Motorola Solutions Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.16 (Sep. 2013 ) + 1.308 (Dec. 2013 ) + 0.49 (Mar. 2014 ) + 3.22 (Jun. 2014 ) = $6.18.

* 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 4.593.792.9430.02-2.0113.955.239.118.9211.54

Motorola Solutions Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 10.008.628.798.9210.8010.3810.2511.5411.2212.28
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