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National Oilwell Varco Inc (NYSE:NOV)
EV/EBITDA
7.74 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, National Oilwell Varco Inc's enterprise value is $35,627 Mil. National Oilwell Varco Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $4,480 Mil. Therefore, National Oilwell Varco Inc's EV/EBITDA ratio for today is 7.74.

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, National Oilwell Varco Inc's stock price is $84.55. National Oilwell Varco Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $5.84. Therefore, National Oilwell Varco Inc's P/E Ratio for today is 14.30.

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


Definition

National Oilwell Varco Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=35627.409/4480
=7.95

National Oilwell Varco Inc's current Enterprise Value is $35,627 Mil.
National Oilwell Varco Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 1144 (Sep. 2013 ) + 1160 (Dec. 2013 ) + 1070 (Mar. 2014 ) + 1106 (Jun. 2014 ) = $4,480 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.

National Oilwell Varco Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=84.55/5.837
=14.49

National Oilwell Varco Inc's share price for today is $84.55.
National Oilwell Varco Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.49 (Sep. 2013 ) + 1.537 (Dec. 2013 ) + 1.37 (Mar. 2014 ) + 1.44 (Jun. 2014 ) = $5.84.

* 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.

National Oilwell Varco Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 14.5317.587.629.912.515.457.856.566.287.34

National Oilwell Varco Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 7.296.097.476.287.187.207.707.346.897.77
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