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R.R. Donnelley & Sons Company (NAS:RRD)
EV/EBITDA
7.27 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, R.R. Donnelley & Sons Company's enterprise value is $6,342 Mil. R.R. Donnelley & Sons Company's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $873 Mil. Therefore, R.R. Donnelley & Sons Company's EV/EBITDA ratio for today is 7.27.

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, R.R. Donnelley & Sons Company's stock price is $17.76. R.R. Donnelley & Sons Company's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.16. Therefore, R.R. Donnelley & Sons Company's P/E Ratio for today is 15.40.

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


Definition

R.R. Donnelley & Sons Company's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6342.276/872.6
=7.27

R.R. Donnelley & Sons Company's current Enterprise Value is $6,342 Mil.
R.R. Donnelley & Sons Company's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 214.3 (Mar. 2013 ) + 278.2 (Jun. 2013 ) + 240.9 (Sep. 2013 ) + 139.2 (Dec. 2013 ) = $873 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.

R.R. Donnelley & Sons Company's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=17.76/1.155
=15.38

R.R. Donnelley & Sons Company's share price for today is $17.76.
R.R. Donnelley & Sons Company's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.15 (Mar. 2013 ) + 0.36 (Jun. 2013 ) + 0.08 (Sep. 2013 ) + 0.565 (Dec. 2013 ) = $1.16.

* 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.

R.R. Donnelley & Sons Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 10.7411.118.2112.9710.858.116.079.2450.017.49

R.R. Donnelley & Sons Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 6.109.249.118.688.2350.0175.7381.841,164.307.49
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