Switch to:
STMicroelectronics NV (NYSE:STM)
EV/EBITDA
4.78 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, STMicroelectronics NV's enterprise value is $5,312 Mil. STMicroelectronics NV's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,338 Mil. Therefore, STMicroelectronics NV's EV/EBITDA ratio for today is 4.78.

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 $6.42. 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 55.80.

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)
=5311.600/1338
=3.97

STMicroelectronics NV's current Enterprise Value is $5,312 Mil.
STMicroelectronics NV's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 794 (Dec. 2013 ) + 205 (Mar. 2014 ) + 302 (Jun. 2014 ) + 37 (Sep. 2014 ) = $1,338 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)
=6.42/0.116
=55.34

STMicroelectronics NV's share price for today is $6.42.
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 0.000.000.000.000.0020.293.873.18-5.238.04

STMicroelectronics NV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 9.60-12.06-5.23-6.13-7.74-15.708.047.246.150.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK