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STMicroelectronics NV (NYSE:STM)
EV/EBITDA
6.86 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, STMicroelectronics NV's enterprise value is $6,215 Mil. STMicroelectronics NV's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $962 Mil. Therefore, STMicroelectronics NV's EV/EBITDA ratio for today is 6.86.

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, STMicroelectronics NV's stock price is $7.53. STMicroelectronics NV's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.12. Therefore, STMicroelectronics NV's P/E Ratio for today is 66.20.

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


Definition

STMicroelectronics NV's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6214.500/962
=6.46

STMicroelectronics NV's current Enterprise Value is $6,215 Mil.
STMicroelectronics NV's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 204 (Dec. 2013 ) + 196 (Mar. 2014 ) + 417 (Jun. 2014 ) + 145 (Sep. 2014 ) = $962 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.

STMicroelectronics NV's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=7.53/0.116
=64.91

STMicroelectronics NV's share price for today is $7.53.
STMicroelectronics NV's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.04 (Dec. 2013 ) + -0.03 (Mar. 2014 ) + 0.106 (Jun. 2014 ) + 0.08 (Sep. 2014 ) = $0.12.

* 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.

STMicroelectronics NV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.000.000.000.00-6.087.333.18-5.2322.50

STMicroelectronics NV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 9.60-12.06-5.23-6.13-7.74-18.7922.5014.269.137.03
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