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Procter & Gamble Co (NYSE:PG)
EV/EBITDA
13.55 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Procter & Gamble Co's enterprise value is $253,844 Mil. Procter & Gamble Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $18,735 Mil. Therefore, Procter & Gamble Co's EV/EBITDA ratio for today is 13.55.

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, Procter & Gamble Co's stock price is $83.28. Procter & Gamble Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.92. Therefore, Procter & Gamble Co's P/E Ratio for today is 21.20.

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


Definition

Procter & Gamble Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=253843.744/18735
=13.55

Procter & Gamble Co's current Enterprise Value is $253,844 Mil.
Procter & Gamble Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 4948 (Sep. 2013 ) + 5373 (Dec. 2013 ) + 4298 (Mar. 2014 ) + 4116 (Jun. 2014 ) = $18,735 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.

Procter & Gamble Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=83.28/3.924
=21.22

Procter & Gamble Co's share price for today is $83.28.
Procter & Gamble Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.04 (Sep. 2013 ) + 1.18 (Dec. 2013 ) + 0.9 (Mar. 2014 ) + 0.804 (Jun. 2014 ) = $3.92.

* 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.

Procter & Gamble Co Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda 11.5412.8911.6111.439.4610.4211.0211.6613.0012.83

Procter & Gamble Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 12.6811.6613.2411.2412.6713.0012.6214.0113.7512.83
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