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RR Donnelley & Sons Co (NAS:RRD)
EV/EBITDA
7.08 (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 $7,050 Mil. RR Donnelley & Sons Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $996 Mil. Therefore, RR Donnelley & Sons Co's EV/EBITDA ratio for today is 7.08.

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 $19.61. RR Donnelley & Sons Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $0.58. Therefore, RR Donnelley & Sons Co's P/E Ratio for today is 33.99.

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)
=7049.500/996.1
=7.08

RR Donnelley & Sons Co's current Enterprise Value is $7,050 Mil.
RR Donnelley & Sons Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 211.5 (Mar. 2014 ) + 300.1 (Jun. 2014 ) + 291.3 (Sep. 2014 ) + 193.2 (Dec. 2014 ) = $996 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)
=19.61/0.577
=33.99

RR Donnelley & Sons Co's share price for today is $19.61.
RR Donnelley & Sons Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was -0.15 (Mar. 2014 ) + 0.32 (Jun. 2014 ) + 0.31 (Sep. 2014 ) + 0.097 (Dec. 2014 ) = $0.58.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 11.118.2112.9710.858.116.079.2450.016.796.51

RR Donnelley & Sons Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 8.2350.0149.0149.751,414.176.797.817.426.586.51
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