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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
2.10 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Transocean Ltd's enterprise value is $5,501 Mil. Transocean Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $2,615 Mil. Therefore, Transocean Ltd's EV/EBITDA ratio for today is 2.10.

RIG' s EV-to-EBITDA Range Over the Past 10 Years
Min: -83.5   Max: 25.4
Current: 2.44

-83.5
25.4

During the past 13 years, the highest EV/EBITDA Ratio of Transocean Ltd was 25.40. The lowest was -83.50. And the median was 6.70.

RIG's EV-to-EBITDA is ranked higher than
82% of the 34 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 6.95 vs. RIG: 2.44 )

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 $14.13. Transocean Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $3.18. Therefore, Transocean Ltd's P/E Ratio for today is 4.44.

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)
=5500.692/2615
=2.10

Transocean Ltd's current Enterprise Value is $5,501 Mil.
Transocean Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 983 (Dec. 2015 ) + 636 (Mar. 2016 ) + 424 (Jun. 2016 ) + 572 (Sep. 2016 ) = $2,615 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)
=14.13/3.18
=4.44

Transocean Ltd's share price for today is $14.13.
Transocean Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 1.67 (Dec. 2015 ) + 0.68 (Mar. 2016 ) + 0.21 (Jun. 2016 ) + 0.62 (Sep. 2016 ) = $3.18.

* 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 15.153.996.338.04-7.298.117.53-80.724.522.57

Transocean Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 22.97-80.72-11.71-8.6910.454.523.133.963.802.57
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