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RR Donnelley & Sons Co (NAS:RRD)
EV/EBITDA
7.72 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, RR Donnelley & Sons Co's enterprise value is $6,865 Mil. RR Donnelley & Sons Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $892 Mil. Therefore, RR Donnelley & Sons Co's EV/EBITDA ratio for today is 7.72.

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, RR Donnelley & Sons Co's stock price is $16.50. RR Donnelley & Sons Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $0.82. Therefore, RR Donnelley & Sons Co's P/E Ratio for today is 20.40.

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


Definition

RR Donnelley & Sons Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6864.604/891.7
=7.70

RR Donnelley & Sons Co's current Enterprise Value is $6,865 Mil.
RR Donnelley & Sons Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 240.9 (Sep. 2013 ) + 139.2 (Dec. 2013 ) + 211.5 (Mar. 2014 ) + 300.1 (Jun. 2014 ) = $892 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.

RR Donnelley & Sons Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=16.50/0.815
=20.25

RR Donnelley & Sons Co's share price for today is $16.50.
RR Donnelley & Sons Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.08 (Sep. 2013 ) + 0.565 (Dec. 2013 ) + -0.15 (Mar. 2014 ) + 0.32 (Jun. 2014 ) = $0.82.

* 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.

RR Donnelley & Sons Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 10.7411.118.2112.9710.858.115.999.2450.017.12

RR Donnelley & Sons Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 9.118.688.2350.0149.0149.75118.297.128.217.73
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