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Sherwin-Williams Co (NYSE:SHW)
EV/EBITDA
15.93 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Sherwin-Williams Co's enterprise value is $22,393 Mil. Sherwin-Williams Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,391 Mil. Therefore, Sherwin-Williams Co's EV/EBITDA ratio for today is 15.93.

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, Sherwin-Williams Co's stock price is $214.39. Sherwin-Williams Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $7.80. Therefore, Sherwin-Williams Co's P/E Ratio for today is 27.40.

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


Definition

Sherwin-Williams Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=22392.916/1391.124
=16.10

Sherwin-Williams Co's current Enterprise Value is $22,393 Mil.
Sherwin-Williams Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 449.594 (Sep. 2013 ) + 214.796 (Dec. 2013 ) + 231.431 (Mar. 2014 ) + 495.303 (Jun. 2014 ) = $1,391 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.

Sherwin-Williams Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=214.39/7.797
=27.50

Sherwin-Williams Co's share price for today is $214.39.
Sherwin-Williams Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 2.55 (Sep. 2013 ) + 1.167 (Dec. 2013 ) + 1.14 (Mar. 2014 ) + 2.94 (Jun. 2014 ) = $7.80.

* 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.

Sherwin-Williams Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.477.979.077.458.479.2511.0110.7714.9014.67

Sherwin-Williams Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 12.5013.7814.1114.9016.0015.6615.2414.6715.8015.89
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