Switch to:
Newfield Exploration Co (NYSE:NFX)
EV/EBITDA
3.96 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Newfield Exploration Co's enterprise value is $8,251 Mil. Newfield Exploration Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $2,086 Mil. Therefore, Newfield Exploration Co's EV/EBITDA ratio for today is 3.96.

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, Newfield Exploration Co's stock price is $38.48. Newfield Exploration Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $6.54. Therefore, Newfield Exploration Co's P/E Ratio for today is 5.88.

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


Definition

Newfield Exploration Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8251.050/2086
=3.96

Newfield Exploration Co's current Enterprise Value is $8,251 Mil.
Newfield Exploration Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 303 (Mar. 2014 ) + 220 (Jun. 2014 ) + 701 (Sep. 2014 ) + 862 (Dec. 2014 ) = $2,086 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.

Newfield Exploration Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=38.48/6.539
=5.88

Newfield Exploration Co's share price for today is $38.48.
Newfield Exploration Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 2.07 (Mar. 2014 ) + -0.16 (Jun. 2014 ) + 2.02 (Sep. 2014 ) + 2.609 (Dec. 2014 ) = $6.54.

* 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.

Newfield Exploration Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 6.614.327.3522.43-37.557.604.71-33.575.423.16

Newfield Exploration Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 5.50-33.57-14.24-17.48-27.715.425.277.814.823.16
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)
FEEDBACK