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TE Connectivity Ltd (NYSE:TEL)
EV/EBITDA
9.63 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, TE Connectivity Ltd's enterprise value is $26,434 Mil. TE Connectivity Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,744 Mil. Therefore, TE Connectivity Ltd's EV/EBITDA ratio for today is 9.63.

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, TE Connectivity Ltd's stock price is $61.92. TE Connectivity Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.27. Therefore, TE Connectivity Ltd's P/E Ratio for today is 14.50.

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


Definition

TE Connectivity Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=26434.300/2744
=9.63

TE Connectivity Ltd's current Enterprise Value is $26,434 Mil.
TE Connectivity Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 665 (Dec. 2013 ) + 684 (Mar. 2014 ) + 702 (Jun. 2014 ) + 693 (Sep. 2014 ) = $2,744 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.

TE Connectivity Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=61.92/4.27
=14.50

TE Connectivity Ltd's share price for today is $61.92.
TE Connectivity Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.84 (Dec. 2013 ) + 0.87 (Mar. 2014 ) + 0.97 (Jun. 2014 ) + 1.59 (Sep. 2014 ) = $4.27.

* 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.

TE Connectivity Ltd Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ev2ebitda 0.000.0017.975.36-3.725.995.797.5011.489.18

TE Connectivity Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 7.237.509.2210.2010.6111.489.9410.119.979.18
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