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Nike, Inc. (NYSE:NKE)
EV/EBITDA
14.43 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Nike, Inc.'s enterprise value is $61,307 Mil. Nike, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $4,303 Mil. Therefore, Nike, Inc.'s EV/EBITDA ratio for today is 14.43.

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, Nike, Inc.'s stock price is $74.03. Nike, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Feb. 2014 was $2.94. Therefore, Nike, Inc.'s P/E Ratio for today is 23.50.

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


Definition

Nike, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=61306.617/4303
=14.25

Nike, Inc.'s current Enterprise Value is $61,307 Mil.
Nike, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 1072 (May. 2013 ) + 1229 (Aug. 2013 ) + 885 (Nov. 2013 ) + 1117 (Feb. 2014 ) = $4,303 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.

Nike, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=74.03/2.94
=25.18

Nike, Inc.'s share price for today is $74.03.
Nike, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2014 was 0.73 (May. 2013 ) + 0.86 (Aug. 2013 ) + 0.59 (Nov. 2013 ) + 0.76 (Feb. 2014 ) = $2.94.

* 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.

Nike, Inc. Annual Data

May04May05May06May07May08May09May10May11May12May13
ev2ebitda 10.259.467.8810.9011.459.969.459.9311.9913.42

Nike, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebitda 11.0212.0911.9910.8510.3512.6513.4212.6316.040.00
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