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Royal Caribbean Cruises Ltd (NYSE:RCL)
EV/EBITDA
13.71 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Royal Caribbean Cruises Ltd's enterprise value is $23,223 Mil. Royal Caribbean Cruises Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,693 Mil. Therefore, Royal Caribbean Cruises Ltd's EV/EBITDA ratio for today is 13.71.

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, Royal Caribbean Cruises Ltd's stock price is $73.74. Royal Caribbean Cruises Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $2.96. Therefore, Royal Caribbean Cruises Ltd's P/E Ratio for today is 24.90.

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


Definition

Royal Caribbean Cruises Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=23222.693/1693.375
=13.71

Royal Caribbean Cruises Ltd's current Enterprise Value is $23,223 Mil.
Royal Caribbean Cruises Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 273.349 (Dec. 2013 ) + 288.763 (Mar. 2014 ) + 388.467 (Jun. 2014 ) + 742.796 (Sep. 2014 ) = $1,693 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.

Royal Caribbean Cruises Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=73.74/2.962
=24.90

Royal Caribbean Cruises Ltd's share price for today is $73.74.
Royal Caribbean Cruises Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.032 (Dec. 2013 ) + 0.12 (Mar. 2014 ) + 0.62 (Jun. 2014 ) + 2.19 (Sep. 2014 ) = $2.96.

* 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.

Royal Caribbean Cruises Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 40.4511.3111.0010.646.9912.7113.058.3314.2411.74

Royal Caribbean Cruises Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 8.759.3414.2413.5613.1813.8411.7413.3212.5112.82
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