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GuruFocus has detected 3 Warning Signs with Toll Brothers Inc $TOL.
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Toll Brothers Inc (NYSE:TOL)
EV-to-EBITDA
15.90 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Toll Brothers Inc's enterprise value is $9,047 Mil. Toll Brothers Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2017 was $569 Mil. Therefore, Toll Brothers Inc's EV/EBITDA ratio for today is 15.90.

TOL' s EV-to-EBITDA Range Over the Past 10 Years
Min: -851.4   Max: 274.3
Current: 15.89

-851.4
274.3

During the past 13 years, the highest EV/EBITDA Ratio of Toll Brothers Inc was 274.30. The lowest was -851.40. And the median was 7.55.

TOL's EV-to-EBITDA is ranked lower than
71% of the 657 Companies
in the Global Residential Construction industry.

( Industry Median: 9.70 vs. TOL: 15.89 )

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, Toll Brothers Inc's stock price is $35.63. Toll Brothers Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2017 was $2.20. Therefore, Toll Brothers Inc's P/E Ratio for today is 16.20.

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


Definition

Toll Brothers Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9046.905/568.819
=15.90

Toll Brothers Inc's current Enterprise Value is $9,047 Mil.
Toll Brothers Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 122.142 (Apr. 2016 ) + 149.343 (Jul. 2016 ) + 240.671 (Oct. 2016 ) + 56.663 (Jan. 2017 ) = $569 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.

Toll Brothers Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=35.63/2.2
=16.20

Toll Brothers Inc's share price for today is $35.63.
Toll Brothers Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2017 was 0.51 (Apr. 2016 ) + 0.61 (Jul. 2016 ) + 0.66 (Oct. 2016 ) + 0.42 (Jan. 2017 ) = $2.20.

* 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.

Toll Brothers Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebitda 31.26-9.53-6.72-46.55-722.7948.7625.4317.9516.3812.39

Toll Brothers Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebitda 17.9516.7718.0621.1016.3813.9312.6412.2712.3914.70
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