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Shire PLC (NAS:SHPG)
EV/EBITDA
19.36 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Shire PLC's enterprise value is $43,626 Mil. Shire PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,253 Mil. Therefore, Shire PLC's EV/EBITDA ratio for today is 19.36.

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, Shire PLC's stock price is $216.73. Shire PLC's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $6.59. Therefore, Shire PLC's P/E Ratio for today is 32.90.

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


Definition

Shire PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=43625.886/2253
=19.36

Shire PLC's current Enterprise Value is $43,626 Mil.
Shire PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 691.5 (Dec. 2013 ) + 408.6 (Mar. 2014 ) + 468.2 (Jun. 2014 ) + 684.7 (Sep. 2014 ) = $2,253 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.

Shire PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=216.73/6.588
=32.90

Shire PLC's share price for today is $216.73.
Shire PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.321 (Dec. 2013 ) + 1.182 (Mar. 2014 ) + 2.658 (Jun. 2014 ) + 2.427 (Sep. 2014 ) = $6.59.

* 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.

Shire PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 6.77-14.1719.97-11.3717.7011.9112.9714.4512.1712.02

Shire PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 10.8310.4712.1712.1712.0313.1412.0214.6322.2223.58
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