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TRW Automotive Holdings Corp (NYSE:TRW)
EV/EBITDA
5.62 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, TRW Automotive Holdings Corp's enterprise value is $9,688 Mil. TRW Automotive Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,691 Mil. Therefore, TRW Automotive Holdings Corp's EV/EBITDA ratio for today is 5.62.

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, TRW Automotive Holdings Corp's stock price is $81.39. TRW Automotive Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $7.87. Therefore, TRW Automotive Holdings Corp's P/E Ratio for today is 10.40.

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


Definition

TRW Automotive Holdings Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9688.216/1691
=5.73

TRW Automotive Holdings Corp's current Enterprise Value is $9,688 Mil.
TRW Automotive Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 358 (Mar. 2013 ) + 490 (Jun. 2013 ) + 395 (Sep. 2013 ) + 448 (Dec. 2013 ) = $1,691 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.

TRW Automotive Holdings Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=81.39/7.865
=10.35

TRW Automotive Holdings Corp's share price for today is $81.39.
TRW Automotive Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 1.29 (Mar. 2013 ) + 1.99 (Jun. 2013 ) + 1.6 (Sep. 2013 ) + 2.985 (Dec. 2013 ) = $7.87.

* 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.

TRW Automotive Holdings Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 4.884.904.644.3723.115.504.412.614.465.14

TRW Automotive Holdings Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 2.822.613.893.233.714.465.075.735.705.14
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