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GuruFocus has detected 4 Warning Signs with Sears Holdings Corp $SHLD.
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Sears Holdings Corp (NAS:SHLD)
EV-to-EBITDA
-3.29 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Sears Holdings Corp's enterprise value is $4,907 Mil. Sears Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2016 was $-1,492 Mil. Therefore, Sears Holdings Corp's EV/EBITDA ratio for today is -3.29.

During the past 13 years, the highest EV/EBITDA Ratio of Sears Holdings Corp was 538.90. The lowest was -127.50. And the median was 4.90.

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, Sears Holdings Corp's stock price is $8.04. Sears Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Oct. 2016 was $-20.54. Therefore, Sears Holdings Corp's P/E Ratio for today is .

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


Definition

Sears Holdings Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4906.550/-1492
=-3.29

Sears Holdings Corp's current Enterprise Value is $4,907 Mil.
Sears Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2016 was -509 (Jan. 2016 ) + -272 (Apr. 2016 ) + -178 (Jul. 2016 ) + -533 (Oct. 2016 ) = $-1,492 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Sears Holdings Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.04/-20.54
=

Sears Holdings Corp's share price for today is $8.04.
Sears Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2016 was -5.44 (Jan. 2016 ) + -4.41 (Apr. 2016 ) + -3.7 (Jul. 2016 ) + -6.99 (Oct. 2016 ) = $-20.54.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Sears Holdings Corp Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
ev2ebitda 5.755.496.015.174.88-9.4980.00484.95-8.77-7.12

Sears Holdings Corp Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebitda -12.58-14.70-8.77-12.54-40.41-37.74-7.12-6.10-3.95-3.51
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