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Pier 1 Imports, Inc. (NYSE:PIR)
EV/EBITDA
6.91 (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 $1,714 Mil. Pier 1 Imports, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $223 Mil. Therefore, Pier 1 Imports, Inc.'s EV/EBITDA ratio for today is 6.91.

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 $17.84. Pier 1 Imports, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Feb. 2014 was $1.03. Therefore, Pier 1 Imports, Inc.'s P/E Ratio for today is 14.90.

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)
=1714.327/223.376
=7.67

Pier 1 Imports, Inc.'s current Enterprise Value is $1,714 Mil.
Pier 1 Imports, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 44.246 (May. 2013 ) + 40.326 (Aug. 2013 ) + 54.748 (Nov. 2013 ) + 84.056 (Feb. 2014 ) = $223 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)
=17.84/1.029
=17.34

Pier 1 Imports, Inc.'s share price for today is $17.84.
Pier 1 Imports, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2014 was 0.19 (May. 2013 ) + 0.17 (Aug. 2013 ) + 0.26 (Nov. 2013 ) + 0.409 (Feb. 2014 ) = $1.03.

* 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 7.9621.580.000.000.006.216.258.218.970.00

Pier 1 Imports, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebitda 7.528.217.718.768.878.979.078.898.660.00
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