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GuruFocus has detected 2 Warning Signs with Office Depot Inc $ODP.
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Office Depot Inc (NAS:ODP)
EV-to-EBITDA
4.15 (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 $2,858 Mil. Office Depot Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $689 Mil. Therefore, Office Depot Inc's EV/EBITDA ratio for today is 4.15.

ODP' s EV-to-EBITDA Range Over the Past 10 Years
Min: -332.1   Max: 76.7
Current: 4.16

-332.1
76.7

During the past 13 years, the highest EV/EBITDA Ratio of Office Depot Inc was 76.70. The lowest was -332.10. And the median was 6.40.

ODP's EV-to-EBITDA is ranked higher than
91% of the 1089 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.23 vs. ODP: 4.16 )

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 $4.94. Office Depot Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.96. Therefore, Office Depot Inc's P/E Ratio for today is 5.15.

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)
=2858.150/689
=4.15

Office Depot Inc's current Enterprise Value is $2,858 Mil.
Office Depot Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 132 (Mar. 2016 ) + 314 (Jun. 2016 ) + 139 (Sep. 2016 ) + 104 (Dec. 2016 ) = $689 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)
=4.94/0.96
=5.15

Office Depot Inc's share price for today is $4.94.
Office Depot Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.08 (Mar. 2016 ) + 0.38 (Jun. 2016 ) + 0.08 (Sep. 2016 ) + 0.42 (Dec. 2016 ) = $0.96.

* 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 5.49-1.25-85.837.773.224.708.5170.528.523.99

Office Depot Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda -258.3570.5223.8014.5611.058.5211.223.183.303.99
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