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Constellation Brands Inc (NYSE:STZ)
EV/EBITDA
7.88 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Constellation Brands Inc's enterprise value is $22,917 Mil. Constellation Brands Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $2,962 Mil. Therefore, Constellation Brands Inc's EV/EBITDA ratio for today is 7.88.

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, Constellation Brands Inc's stock price is $83.59. Constellation Brands Inc's earnings per share for the trailing twelve months (TTM) ended in May. 2014 was $10.63. Therefore, Constellation Brands Inc's P/E Ratio for today is 8.10.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=22917.116/2962.2
=7.74

Constellation Brands Inc's current Enterprise Value is $22,917 Mil.
Constellation Brands Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 1721.9 (Aug. 2013 ) + 425.9 (Nov. 2013 ) + 372.7 (Feb. 2014 ) + 441.7 (May. 2014 ) = $2,962 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=83.59/10.627
=7.87

Constellation Brands Inc's share price for today is $83.59.
Constellation Brands Inc's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2014 was 7.74 (Aug. 2013 ) + 1.07 (Nov. 2013 ) + 0.787 (Feb. 2014 ) + 1.03 (May. 2014 ) = $10.63.

* 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.

Constellation Brands Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ev2ebitda 13.6010.9210.25140.2019.5710.498.528.8113.828.58

Constellation Brands Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebitda 8.818.8012.8313.5613.8218.717.718.368.587.75
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