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GuruFocus has detected 4 Warning Signs with Sturm Ruger & Co Inc $RGR.
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Sturm Ruger & Co Inc (NYSE:RGR)
EV-to-EBITDA
5.73 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Sturm Ruger & Co Inc's enterprise value is $982.8 Mil. Sturm Ruger & Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $171.5 Mil. Therefore, Sturm Ruger & Co Inc's EV/EBITDA ratio for today is 5.73.

RGR' s EV-to-EBITDA Range Over the Past 10 Years
Min: 2.5   Max: 4840.6
Current: 5.73

2.5
4840.6

During the past 13 years, the highest EV/EBITDA Ratio of Sturm Ruger & Co Inc was 4840.60. The lowest was 2.50. And the median was 7.40.

RGR's EV-to-EBITDA is ranked higher than
95% of the 281 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 12.69 vs. RGR: 5.73 )

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 & Co Inc's stock price is $60.45. Sturm Ruger & Co Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $4.57. Therefore, Sturm Ruger & Co Inc's P/E Ratio for today is 13.23.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=982.839/171.463
=5.73

Sturm Ruger & Co Inc's current Enterprise Value is $982.8 Mil.
Sturm Ruger & Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 44.545 (Mar. 2016 ) + 44.83 (Jun. 2016 ) + 38.635 (Sep. 2016 ) + 43.453 (Dec. 2016 ) = $171.5 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=60.45/4.57
=13.23

Sturm Ruger & Co Inc's share price for today is $60.45.
Sturm Ruger & Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.21 (Mar. 2016 ) + 1.22 (Jun. 2016 ) + 1.03 (Sep. 2016 ) + 1.11 (Dec. 2016 ) = $4.57.

* 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.

Sturm Ruger & Co Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 10.124.522.494.327.366.646.956.807.905.24

Sturm Ruger & Co Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 5.866.8011.2013.7812.747.908.437.246.015.24
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