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TRC Companies, Inc. (NYSE:TRR)
EV/EBITDA
6.61 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, TRC Companies, Inc.'s enterprise value is $160.8 Mil. TRC Companies, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $27.2 Mil. Therefore, TRC Companies, Inc.'s EV/EBITDA ratio for today is 6.61.

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, TRC Companies, Inc.'s stock price is $5.56. TRC Companies, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.11. Therefore, TRC Companies, Inc.'s P/E Ratio for today is 4.80.

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


Definition

TRC Companies, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=160.811/27.203
=5.91

TRC Companies, Inc.'s current Enterprise Value is $160.8 Mil.
TRC Companies, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 5.22 (Mar. 2013 ) + 8.108 (Jun. 2013 ) + 6.43 (Sep. 2013 ) + 7.445 (Dec. 2013 ) = $27.2 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.

TRC Companies, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.56/1.113
=5.00

TRC Companies, Inc.'s share price for today is $5.56.
TRC Companies, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.1 (Mar. 2013 ) + 0.833 (Jun. 2013 ) + 0.08 (Sep. 2013 ) + 0.1 (Dec. 2013 ) = $1.11.

* 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.

TRC Companies, Inc. Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev2ebitda 11.310.000.0036.380.000.000.000.004.387.28

TRC Companies, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 7.2713.3811.294.388.256.477.167.287.767.48
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