Switch to:
Pier 1 Imports Inc (NYSE:PIR)
EV/EBITDA
5.65 (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 $989 Mil. Pier 1 Imports Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2015 was $175 Mil. Therefore, Pier 1 Imports Inc's EV/EBITDA ratio for today is 5.65.

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 $9.99. Pier 1 Imports Inc's earnings per share for the trailing twelve months (TTM) ended in May. 2015 was $0.75. Therefore, Pier 1 Imports Inc's P/E Ratio for today is 13.32.

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)
=989.480/175.147
=5.65

Pier 1 Imports Inc's current Enterprise Value is $989 Mil.
Pier 1 Imports Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2015 was 31.038 (Aug. 2014 ) + 46.335 (Nov. 2014 ) + 70.483 (Feb. 2015 ) + 27.291 (May. 2015 ) = $175 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)
=9.99/0.75
=13.32

Pier 1 Imports Inc's share price for today is $9.99.
Pier 1 Imports Inc's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2015 was 0.1 (Aug. 2014 ) + 0.2 (Nov. 2014 ) + 0.37 (Feb. 2015 ) + 0.08 (May. 2015 ) = $0.75.

* 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
ev2ebitda 21.58-4.13-23.22-0.696.216.258.218.978.196.44

Pier 1 Imports Inc Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
ev2ebitda 8.979.078.888.598.197.607.837.276.447.12
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK