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GuruFocus has detected 4 Warning Signs with PPG Industries Inc $PPG.
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PPG Industries Inc (NYSE:PPG)
EV-to-EBITDA
19.86 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, PPG Industries Inc's enterprise value is $29,200 Mil. PPG Industries Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $1,470 Mil. Therefore, PPG Industries Inc's EV/EBITDA ratio for today is 19.86.

PPG' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.8   Max: 20.5
Current: 19.87

4.8
20.5

During the past 13 years, the highest EV/EBITDA Ratio of PPG Industries Inc was 20.50. The lowest was 4.80. And the median was 9.70.

PPG's EV-to-EBITDA is ranked lower than
71% of the 966 Companies
in the Global Specialty Chemicals industry.

( Industry Median: 11.42 vs. PPG: 19.87 )

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, PPG Industries Inc's stock price is $103.31. PPG Industries Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.27. Therefore, PPG Industries Inc's P/E Ratio for today is 31.59.

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


Definition

PPG Industries Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=29200.424/1470
=19.86

PPG Industries Inc's current Enterprise Value is $29,200 Mil.
PPG Industries Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 623 (Mar. 2016 ) + 825 (Jun. 2016 ) + -260 (Sep. 2016 ) + 282 (Dec. 2016 ) = $1,470 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

PPG Industries Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=103.31/3.27
=31.59

PPG Industries Inc's share price for today is $103.31.
PPG Industries Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.29 (Mar. 2016 ) + 1.37 (Jun. 2016 ) + -0.69 (Sep. 2016 ) + 1.3 (Dec. 2016 ) = $3.27.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

PPG Industries Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 7.755.819.428.078.1215.7615.0617.3212.0418.81

PPG Industries Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 11.5417.3216.9017.7013.5012.0413.3111.6117.8318.81
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