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Toll Brothers Inc (NYSE:TOL)
EV/EBITDA
16.71 (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 $9,268 Mil. Toll Brothers Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2015 was $555 Mil. Therefore, Toll Brothers Inc's EV/EBITDA ratio for today is 16.71.

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 $36.47. Toll Brothers Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2015 was $2.03. Therefore, Toll Brothers Inc's P/E Ratio for today is 17.98.

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)
=9268.057/554.628
=16.71

Toll Brothers Inc's current Enterprise Value is $9,268 Mil.
Toll Brothers Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2015 was 99.946 (Apr. 2014 ) + 156.92 (Jul. 2014 ) + 194.847 (Oct. 2014 ) + 102.915 (Jan. 2015 ) = $555 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=36.47/2.028
=17.98

Toll Brothers Inc's share price for today is $36.47.
Toll Brothers Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2015 was 0.35 (Apr. 2014 ) + 0.53 (Jul. 2014 ) + 0.708 (Oct. 2014 ) + 0.44 (Jan. 2015 ) = $2.03.

* 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.

Toll Brothers Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebitda 4.464.4331.44-9.53-6.72-46.55-722.7948.7625.4324.14

Toll Brothers Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebitda 48.7649.1736.8040.5425.4326.8524.9725.4824.1416.12
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