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PetSmart Inc. (NAS:PETM)
EV/EBITDA
7.47 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, PetSmart Inc.'s enterprise value is $6,823 Mil. PetSmart Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $929 Mil. Therefore, PetSmart Inc.'s EV/EBITDA ratio for today is 7.47.

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, PetSmart Inc.'s stock price is $66.80. PetSmart Inc.'s earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $4.02. Therefore, PetSmart Inc.'s P/E Ratio for today is 16.40.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6822.994/928.749
=7.35

PetSmart Inc.'s current Enterprise Value is $6,823 Mil.
PetSmart Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 226.434 (Apr. 2013 ) + 215.573 (Jul. 2013 ) + 211.524 (Oct. 2013 ) + 275.218 (Jan. 2014 ) = $929 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=66.80/4.022
=16.61

PetSmart Inc.'s share price for today is $66.80.
PetSmart Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.98 (Apr. 2013 ) + 0.89 (Jul. 2013 ) + 0.88 (Oct. 2013 ) + 1.272 (Jan. 2014 ) = $4.02.

* 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.

PetSmart Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebitda 11.347.709.035.314.725.517.338.127.887.01

PetSmart Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 7.588.128.449.198.717.887.988.448.277.01
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