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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, STMicroelectronics NV's enterprise value is $5,888 Mil. STMicroelectronics NV's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $597 Mil. Therefore, STMicroelectronics NV's EV/EBITDA ratio for today is 9.86.

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 $7.16. STMicroelectronics NV's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $0.17. Therefore, STMicroelectronics NV's P/E Ratio for today is 42.37.

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)
=5888.281/597
=9.86

STMicroelectronics NV's current Enterprise Value is $5,888 Mil.
STMicroelectronics NV's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 145 (Sep. 2014 ) + 256 (Dec. 2014 ) + 0 (Mar. 2015 ) + 196 (Jun. 2015 ) = $597 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)
=7.16/0.169
=42.37

STMicroelectronics NV's share price for today is $7.16.
STMicroelectronics NV's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.08 (Sep. 2014 ) + 0.049 (Dec. 2014 ) + 0 (Mar. 2015 ) + 0.04 (Jun. 2015 ) = $0.17.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.000.000.000.00-15.334.453.18-4.2022.727.32

STMicroelectronics NV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda -4.92-6.18-20.5022.7214.3310.598.007.3213.1612.33
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