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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Shire PLC's enterprise value is $29,619 Mil. Shire PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $2,056 Mil. Therefore, Shire PLC's EV/EBITDA ratio for today is 13.19.

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 $159.91. Shire PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.50. Therefore, Shire PLC's P/E Ratio for today is 45.80.

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)
=29619.450/2056.1
=14.41

Shire PLC's current Enterprise Value is $29,619 Mil.
Shire PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 203.7 (Mar. 2013 ) + 417.1 (Jun. 2013 ) + 420 (Sep. 2013 ) + 1015.3 (Dec. 2013 ) = $2,056 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)
=159.91/3.495
=45.75

Shire PLC's share price for today is $159.91.
Shire PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.351 (Mar. 2013 ) + 1.359 (Jun. 2013 ) + 1.464 (Sep. 2013 ) + 0.321 (Dec. 2013 ) = $3.50.

* 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 7.520.0020.650.0015.2812.4713.3213.7612.4811.81

Shire PLC Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 14.2213.7612.0610.6610.6412.4814.1414.1717.0211.81
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