Switch to:
GuruFocus has detected 3 Warning Signs with Office Depot Inc $ODP.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Office Depot Inc (NAS:ODP)
EV/EBITDA
4.12 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Office Depot Inc's enterprise value is $2,694 Mil. Office Depot Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $654 Mil. Therefore, Office Depot Inc's EV/EBITDA ratio for today is 4.12.

ODP' s EV/EBITDA Range Over the Past 10 Years
Min: -332.1   Max: 90.3
Current: 4.1

-332.1
90.3

During the past 13 years, the highest EV/EBITDA Ratio of Office Depot Inc was 90.30. The lowest was -332.10. And the median was 6.70.

ODP's EV/EBITDA is ranked higher than
93% of the 872 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.90 vs. ODP: 4.10 )

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, Office Depot Inc's stock price is $4.36. Office Depot Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $0.56. Therefore, Office Depot Inc's P/E Ratio for today is 7.79.

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


Definition

Office Depot Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2693.727/654
=4.12

Office Depot Inc's current Enterprise Value is $2,694 Mil.
Office Depot Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 69 (Dec. 2015 ) + 132 (Mar. 2016 ) + 314 (Jun. 2016 ) + 139 (Sep. 2016 ) = $654 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.

Office Depot Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=4.36/0.56
=7.79

Office Depot Inc's share price for today is $4.36.
Office Depot Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.02 (Dec. 2015 ) + 0.08 (Mar. 2016 ) + 0.38 (Jun. 2016 ) + 0.08 (Sep. 2016 ) = $0.56.

* 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.

Office Depot Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 10.725.49-1.25-85.837.773.224.708.4983.038.80

Office Depot Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 16.62-258.3583.0324.9615.0011.398.8012.333.353.48
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