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Rockwell Automation Inc (NYSE:ROK)
EV/EBITDA
12.95 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rockwell Automation Inc's enterprise value is $16,501 Mil. Rockwell Automation Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $1,266 Mil. Therefore, Rockwell Automation Inc's EV/EBITDA ratio for today is 12.95.

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, Rockwell Automation Inc's stock price is $122.64. Rockwell Automation Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $5.68. Therefore, Rockwell Automation Inc's P/E Ratio for today is 21.50.

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


Definition

Rockwell Automation Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=16501.416/1266
=13.03

Rockwell Automation Inc's current Enterprise Value is $16,501 Mil.
Rockwell Automation Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 310.4 (Jun. 2013 ) + 330.2 (Sep. 2013 ) + 323.6 (Dec. 2013 ) + 301.8 (Mar. 2014 ) = $1,266 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.

Rockwell Automation Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=122.64/5.675
=21.61

Rockwell Automation Inc's share price for today is $122.64.
Rockwell Automation Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.45 (Jun. 2013 ) + 1.535 (Sep. 2013 ) + 1.41 (Dec. 2013 ) + 1.28 (Mar. 2014 ) = $5.68.

* 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.

Rockwell Automation Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev2ebitda 11.1212.1611.4811.015.6313.4712.087.438.1812.08

Rockwell Automation Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 9.5610.038.028.1810.1510.359.6912.0812.8313.24
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