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Pier 1 Imports Inc (NYSE:PIR)
EV/EBITDA
6.44 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Pier 1 Imports Inc's enterprise value is $1,271 Mil. Pier 1 Imports Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $197 Mil. Therefore, Pier 1 Imports Inc's EV/EBITDA ratio for today is 6.44.

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, Pier 1 Imports Inc's stock price is $12.05. Pier 1 Imports Inc's earnings per share for the trailing twelve months (TTM) ended in Nov. 2014 was $0.87. Therefore, Pier 1 Imports Inc's P/E Ratio for today is 13.87.

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


Definition

Pier 1 Imports Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1270.729/197.318
=6.44

Pier 1 Imports Inc's current Enterprise Value is $1,271 Mil.
Pier 1 Imports Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 82.84 (Feb. 2014 ) + 38.136 (May. 2014 ) + 30.007 (Aug. 2014 ) + 46.335 (Nov. 2014 ) = $197 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.

Pier 1 Imports Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=12.05/0.869
=13.87

Pier 1 Imports Inc's share price for today is $12.05.
Pier 1 Imports Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Nov. 2014 was 0.409 (Feb. 2014 ) + 0.16 (May. 2014 ) + 0.1 (Aug. 2014 ) + 0.2 (Nov. 2014 ) = $0.87.

* 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.

Pier 1 Imports Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ev2ebitda 7.9621.58-4.15-23.21-0.696.216.258.218.978.19

Pier 1 Imports Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev2ebitda 8.768.878.979.078.888.598.197.567.837.27
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