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Ralph Lauren Corp (NYSE:RL)
EV/EBITDA
10.53 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Ralph Lauren Corp's enterprise value is $14,321 Mil. Ralph Lauren Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,352 Mil. Therefore, Ralph Lauren Corp's EV/EBITDA ratio for today is 10.53.

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, Ralph Lauren Corp's stock price is $172.60. Ralph Lauren Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $8.27. Therefore, Ralph Lauren Corp's P/E Ratio for today is 20.90.

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


Definition

Ralph Lauren Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=14321.007/1352
=10.59

Ralph Lauren Corp's current Enterprise Value is $14,321 Mil.
Ralph Lauren Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 361 (Sep. 2013 ) + 395 (Dec. 2013 ) + 288 (Mar. 2014 ) + 308 (Jun. 2014 ) = $1,352 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.

Ralph Lauren Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=172.60/8.27
=20.87

Ralph Lauren Corp's share price for today is $172.60.
Ralph Lauren Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 2.23 (Sep. 2013 ) + 2.57 (Dec. 2013 ) + 1.67 (Mar. 2014 ) + 1.8 (Jun. 2014 ) = $8.27.

* 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.

Ralph Lauren Corp Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebitda 9.559.8911.186.984.778.4310.7712.0610.719.96

Ralph Lauren Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 12.069.4110.329.6310.7111.0211.1611.349.969.93
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