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GuruFocus has detected 6 Warning Signs with Teva Pharmaceutical Industries Ltd $TEVA.
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Teva Pharmaceutical Industries Ltd (NYSE:TEVA)
EV-to-EBITDA
25.61 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Teva Pharmaceutical Industries Ltd's enterprise value is $74,128 Mil. Teva Pharmaceutical Industries Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $2,894 Mil. Therefore, Teva Pharmaceutical Industries Ltd's EV/EBITDA ratio for today is 25.61.

TEVA' s EV-to-EBITDA Range Over the Past 10 Years
Min: 12.9   Max: 40.6
Current: 28.07

12.9
40.6

During the past 13 years, the highest EV/EBITDA Ratio of Teva Pharmaceutical Industries Ltd was 40.60. The lowest was 12.90. And the median was 19.80.

TEVA's EV-to-EBITDA is ranked lower than
70% of the 600 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 16.72 vs. TEVA: 28.07 )

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, Teva Pharmaceutical Industries Ltd's stock price is $35.38. Teva Pharmaceutical Industries Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.06. Therefore, Teva Pharmaceutical Industries Ltd's P/E Ratio for today is 589.67.

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


Definition

Teva Pharmaceutical Industries Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=74127.821/2894
=25.61

Teva Pharmaceutical Industries Ltd's current Enterprise Value is $74,128 Mil.
Teva Pharmaceutical Industries Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1470 (Mar. 2016 ) + 671 (Jun. 2016 ) + 1342 (Sep. 2016 ) + -589 (Dec. 2016 ) = $2,894 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Teva Pharmaceutical Industries Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=35.38/0.06
=589.67

Teva Pharmaceutical Industries Ltd's share price for today is $35.38.
Teva Pharmaceutical Industries Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.62 (Mar. 2016 ) + 0.2 (Jun. 2016 ) + 0.35 (Sep. 2016 ) + -1.11 (Dec. 2016 ) = $0.06.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Teva Pharmaceutical Industries Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 12.9827.1216.0410.8711.5511.3114.9417.4715.9627.55

Teva Pharmaceutical Industries Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 0.0017.4719.8522.5840.2515.9614.0113.9423.0227.55
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