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Staples Inc (NAS:SPLS)
EV/EBITDA
9.01 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Staples Inc's enterprise value is $11,860 Mil. Staples Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $1,316 Mil. Therefore, Staples Inc's EV/EBITDA ratio for today is 9.01.

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, Staples Inc's stock price is $17.98. Staples Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $0.95. Therefore, Staples Inc's P/E Ratio for today is 19.01.

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


Definition

Staples Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11860.397/1316.273
=9.01

Staples Inc's current Enterprise Value is $11,860 Mil.
Staples Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 458.608 (Jan. 2014 ) + 277.688 (Apr. 2014 ) + 136.943 (Jul. 2014 ) + 443.034 (Oct. 2014 ) = $1,316 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.

Staples Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=17.98/0.946
=19.01

Staples Inc's share price for today is $17.98.
Staples Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.326 (Jan. 2014 ) + 0.15 (Apr. 2014 ) + 0.13 (Jul. 2014 ) + 0.34 (Oct. 2014 ) = $0.95.

* 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.

Staples Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebitda 11.2610.189.418.027.209.398.045.1810.765.62

Staples Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 4.867.4010.7610.8914.587.255.625.626.036.44
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