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GuruFocus has detected 1 Warning Sign with Transocean Ltd $RIG.
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Transocean Ltd (NYSE:RIG)
EV-to-EBITDA
4.35 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Transocean Ltd's enterprise value is $9,727 Mil. Transocean Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $2,236 Mil. Therefore, Transocean Ltd's EV/EBITDA ratio for today is 4.35.

RIG' s EV-to-EBITDA Range Over the Past 10 Years
Min: -90.6   Max: 25.4
Current: 4.35

-90.6
25.4

During the past 13 years, the highest EV/EBITDA Ratio of Transocean Ltd was 25.40. The lowest was -90.60. And the median was 6.60.

RIG's EV-to-EBITDA is ranked higher than
78% of the 74 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.59 vs. RIG: 4.35 )

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, Transocean Ltd's stock price is $11.03. Transocean Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $2.09. Therefore, Transocean Ltd's P/E Ratio for today is 5.28.

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


Definition

Transocean Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9726.859/2236
=4.35

Transocean Ltd's current Enterprise Value is $9,727 Mil.
Transocean Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 636 (Mar. 2016 ) + 424 (Jun. 2016 ) + 572 (Sep. 2016 ) + 604 (Dec. 2016 ) = $2,236 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.

Transocean Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=11.03/2.09
=5.28

Transocean Ltd's share price for today is $11.03.
Transocean Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.68 (Mar. 2016 ) + 0.21 (Jun. 2016 ) + 0.62 (Sep. 2016 ) + 0.58 (Dec. 2016 ) = $2.09.

* 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.

Transocean Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 15.153.996.338.04-7.298.117.53-87.614.554.99

Transocean Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 22.97-87.61-11.86-8.7810.324.553.153.983.824.99
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