Switch to:
NewMarket Corporation (NYSE:NEU)
EV/EBITDA
12.62 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, NewMarket Corporation's enterprise value is $5,219 Mil. NewMarket Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $408 Mil. Therefore, NewMarket Corporation's EV/EBITDA ratio for today is 12.62.

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, NewMarket Corporation's stock price is $392.80. NewMarket Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $19.92. Therefore, NewMarket Corporation's P/E Ratio for today is 19.60.

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


Definition

NewMarket Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5218.830/407.788
=12.80

NewMarket Corporation's current Enterprise Value is $5,219 Mil.
NewMarket Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 110.778 (Mar. 2013 ) + 107.166 (Jun. 2013 ) + 97.114 (Sep. 2013 ) + 92.73 (Dec. 2013 ) = $408 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.

NewMarket Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=392.80/19.915
=19.72

NewMarket Corporation's share price for today is $392.80.
NewMarket Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 5.07 (Mar. 2013 ) + 4.81 (Jun. 2013 ) + 5.94 (Sep. 2013 ) + 4.095 (Dec. 2013 ) = $19.92.

* 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.

NewMarket Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 4.635.968.696.835.146.536.027.799.9111.14

NewMarket Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 5.887.796.817.518.679.919.949.7910.3011.14
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
Hide