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RR Donnelley & Sons Co (NAS:RRD)
EV/EBITDA
6.64 (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 $6,855 Mil. RR Donnelley & Sons Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,033 Mil. Therefore, RR Donnelley & Sons Co's EV/EBITDA ratio for today is 6.64.

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 $16.72. RR Donnelley & Sons Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.05. Therefore, RR Donnelley & Sons Co's P/E Ratio for today is 15.90.

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)
=6855.300/1033.2
=6.64

RR Donnelley & Sons Co's current Enterprise Value is $6,855 Mil.
RR Donnelley & Sons Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 230.3 (Dec. 2013 ) + 211.5 (Mar. 2014 ) + 300.1 (Jun. 2014 ) + 291.3 (Sep. 2014 ) = $1,033 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)
=16.72/1.045
=16.00

RR Donnelley & Sons Co's share price for today is $16.72.
RR Donnelley & Sons Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.565 (Dec. 2013 ) + -0.15 (Mar. 2014 ) + 0.32 (Jun. 2014 ) + 0.31 (Sep. 2014 ) = $1.05.

* 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 12.2911.118.2113.1410.818.116.0710.1537.376.79

RR Donnelley & Sons Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 9.278.7737.3741.3643.77304.596.797.817.366.58
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