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Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM)
EV/EBITDA
7.56 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Taiwan Semiconductor Manufacturing Co Ltd's enterprise value is $108,092 Mil. Taiwan Semiconductor Manufacturing Co Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $13,707 Mil. Therefore, Taiwan Semiconductor Manufacturing Co Ltd's EV/EBITDA ratio for today is 7.56.

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, Taiwan Semiconductor Manufacturing Co Ltd's stock price is $20.83. Taiwan Semiconductor Manufacturing Co Ltd's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $1.29. Therefore, Taiwan Semiconductor Manufacturing Co Ltd'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

Taiwan Semiconductor Manufacturing Co Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=108092.414/13707.0615064
=7.89

Taiwan Semiconductor Manufacturing Co Ltd's current Enterprise Value is $108,092 Mil.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 3421.7803724 (Sep. 2013 ) + 3078.8324927 (Dec. 2013 ) + 3170.29771801 (Mar. 2014 ) + 4036.15092324 (Jun. 2014 ) = $13,707 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.

Taiwan Semiconductor Manufacturing Co Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=20.83/1.29077210424
=16.14

Taiwan Semiconductor Manufacturing Co Ltd's share price for today is $20.83.
Taiwan Semiconductor Manufacturing Co Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.340402355584 (Sep. 2013 ) + 0.260021237059 (Dec. 2013 ) + 0.306362401881 (Mar. 2014 ) + 0.38398610972 (Jun. 2014 ) = $1.29.

* 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.

Taiwan Semiconductor Manufacturing Co Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 6.748.347.546.994.928.526.607.307.917.25

Taiwan Semiconductor Manufacturing Co Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 8.357.537.857.917.758.087.187.257.937.77
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