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GuruFocus has detected 4 Warning Signs with Micron Technology Inc $MU.
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Micron Technology Inc (NAS:MU)
EV-to-EBITDA
11.47 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Micron Technology Inc's enterprise value is $40,726 Mil. Micron Technology Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $3,552 Mil. Therefore, Micron Technology Inc's EV/EBITDA ratio for today is 11.47.

MU' s EV-to-EBITDA Range Over the Past 10 Years
Min: 2   Max: 45.5
Current: 11.47

2
45.5

During the past 13 years, the highest EV/EBITDA Ratio of Micron Technology Inc was 45.50. The lowest was 2.00. And the median was 6.20.

MU's EV-to-EBITDA is ranked higher than
56% of the 762 Companies
in the Global Semiconductor Memory industry.

( Industry Median: 13.23 vs. MU: 11.47 )

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, Micron Technology Inc's stock price is $28.43. Micron Technology Inc's earnings per share for the trailing twelve months (TTM) ended in Feb. 2017 was $0.55. Therefore, Micron Technology Inc's P/E Ratio for today is 51.69.

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


Definition

Micron Technology Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=40726.235/3552
=11.47

Micron Technology Inc's current Enterprise Value is $40,726 Mil.
Micron Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was 704 (May. 2016 ) + 681 (Aug. 2016 ) + 1123 (Nov. 2016 ) + 1044 (Feb. 2017 ) = $3,552 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Micron Technology Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=28.43/0.55
=51.69

Micron Technology Inc's share price for today is $28.43.
Micron Technology Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2017 was -0.21 (May. 2016 ) + -0.17 (Aug. 2016 ) + 0.16 (Nov. 2016 ) + 0.77 (Feb. 2017 ) = $0.55.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Micron Technology Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
ev2ebitda 6.9714.0418.641.912.574.945.417.283.997.78

Micron Technology Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebitda 6.945.885.573.994.293.705.167.788.149.92
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