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Procter & Gamble Co (NYSE:PG)
EV/EBITDA
14.01 (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 $206,962 Mil. Procter & Gamble Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $14,768 Mil. Therefore, Procter & Gamble Co's EV/EBITDA ratio for today is 14.01.

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 $68.76. Procter & Gamble Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $2.35. Therefore, Procter & Gamble Co's P/E Ratio for today is 29.25.

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)
=206961.782/14768
=14.01

Procter & Gamble Co's current Enterprise Value is $206,962 Mil.
Procter & Gamble Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 3786 (Sep. 2014 ) + 4746 (Dec. 2014 ) + 4012 (Mar. 2015 ) + 2224 (Jun. 2015 ) = $14,768 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)
=68.76/2.351
=29.25

Procter & Gamble Co's share price for today is $68.76.
Procter & Gamble Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.69 (Sep. 2014 ) + 0.82 (Dec. 2014 ) + 0.75 (Mar. 2015 ) + 0.091 (Jun. 2015 ) = $2.35.

* 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

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
ev2ebitda 12.9011.6111.439.4710.4210.9611.5913.0013.0715.76

Procter & Gamble Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 12.6713.0012.6414.2314.0913.0714.5616.0414.5715.76
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