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Sturm Ruger & Co Inc (NYSE:RGR)
EV/EBITDA
4.14 (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 $648.7 Mil. Sturm Ruger & Co Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $156.6 Mil. Therefore, Sturm Ruger & Co Inc's EV/EBITDA ratio for today is 4.14.

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 $34.85. Sturm Ruger & Co Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.01. Therefore, Sturm Ruger & Co Inc's P/E Ratio for today is 8.70.

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)
=648.659/156.641
=4.14

Sturm Ruger & Co Inc's current Enterprise Value is $648.7 Mil.
Sturm Ruger & Co Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 48.845 (Dec. 2013 ) + 46.909 (Mar. 2014 ) + 41.987 (Jun. 2014 ) + 18.9 (Sep. 2014 ) = $156.6 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 & Co Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=34.85/4.007
=8.70

Sturm Ruger & Co Inc's share price for today is $34.85.
Sturm Ruger & Co Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.327 (Dec. 2013 ) + 1.22 (Mar. 2014 ) + 1.12 (Jun. 2014 ) + 0.34 (Sep. 2014 ) = $4.01.

* 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 & Co Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 29.8564.523,298.2810.124.522.494.327.366.646.95

Sturm Ruger & Co Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 6.747.626.646.635.246.306.955.535.855.97
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