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Sturm Ruger & Company (NYSE:RGR)
EV/EBITDA
5.41 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Sturm Ruger & Company's enterprise value is $1,077.3 Mil. Sturm Ruger & Company's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $201.0 Mil. Therefore, Sturm Ruger & Company's EV/EBITDA ratio for today is 5.41.

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, Sturm Ruger & Company's stock price is $58.10. Sturm Ruger & Company's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $5.62. Therefore, Sturm Ruger & Company's P/E Ratio for today is 10.50.

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


Definition

Sturm Ruger & Company's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1077.344/200.966
=5.36

Sturm Ruger & Company's current Enterprise Value is $1,077.3 Mil.
Sturm Ruger & Company's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 55.685 (Jun. 2013 ) + 49.527 (Sep. 2013 ) + 48.845 (Dec. 2013 ) + 46.909 (Mar. 2014 ) = $201.0 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.

Sturm Ruger & Company's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=58.10/5.617
=10.34

Sturm Ruger & Company's share price for today is $58.10.
Sturm Ruger & Company's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.63 (Jun. 2013 ) + 1.44 (Sep. 2013 ) + 1.327 (Dec. 2013 ) + 1.22 (Mar. 2014 ) = $5.62.

* 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.

Sturm Ruger & Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 16.3223.9478.1710.124.522.494.327.366.646.95

Sturm Ruger & Company Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 7.369.586.747.626.646.635.246.306.955.53
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