Switch to:
Seagate Technology PLC (NAS:STX)
EV/EBITDA
5.95 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Seagate Technology PLC's enterprise value is $19,306 Mil. Seagate Technology PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $3,246 Mil. Therefore, Seagate Technology PLC's EV/EBITDA ratio for today is 5.95.

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, Seagate Technology PLC's stock price is $61.12. Seagate Technology PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $6.04. Therefore, Seagate Technology PLC's P/E Ratio for today is 10.13.

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


Definition

Seagate Technology PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=19305.947/3246
=5.95

Seagate Technology PLC's current Enterprise Value is $19,306 Mil.
Seagate Technology PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 653 (Mar. 2014 ) + 545 (Jun. 2014 ) + 664 (Sep. 2014 ) + 1384 (Dec. 2014 ) = $3,246 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.

Seagate Technology PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=61.12/6.035
=10.13

Seagate Technology PLC's share price for today is $61.12.
Seagate Technology PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.17 (Mar. 2014 ) + 0.955 (Jun. 2014 ) + 1.13 (Sep. 2014 ) + 2.78 (Dec. 2014 ) = $6.04.

* 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.

Seagate Technology PLC Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda 5.856.608.184.42-3.632.434.672.685.737.54

Seagate Technology PLC Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 2.882.713.765.735.797.267.347.547.886.90
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