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GuruFocus has detected 7 Warning Signs with Toro Co $TTC.
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Toro Co (NYSE:TTC)
EV/EBITDA
17.98 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Toro Co's enterprise value is $6,290 Mil. Toro Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2016 was $350 Mil. Therefore, Toro Co's EV/EBITDA ratio for today is 17.98.

TTC' s EV/EBITDA Range Over the Past 10 Years
Min: 4.9   Max: 18.8
Current: 17.61

4.9
18.8

During the past 13 years, the highest EV/EBITDA Ratio of Toro Co was 18.80. The lowest was 4.90. And the median was 10.10.

TTC's EV/EBITDA is ranked lower than
65% of the 1489 Companies
in the Global Tools & Accessories industry.

( Industry Median: 12.23 vs. TTC: 17.61 )

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, Toro Co's stock price is $57.44. Toro Co's earnings per share for the trailing twelve months (TTM) ended in Oct. 2016 was $2.07. Therefore, Toro Co's P/E Ratio for today is 27.82.

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


Definition

Toro Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6290.112/349.796
=17.98

Toro Co's current Enterprise Value is $6,290 Mil.
Toro Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2016 was 58.351 (Jan. 2016 ) + 158.963 (Apr. 2016 ) + 85.433 (Jul. 2016 ) + 47.049 (Oct. 2016 ) = $350 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.

Toro Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=57.44/2.065
=27.82

Toro Co's share price for today is $57.44.
Toro Co's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2016 was 0.35 (Jan. 2016 ) + 0.945 (Apr. 2016 ) + 0.5 (Jul. 2016 ) + 0.27 (Oct. 2016 ) = $2.07.

* 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.

Toro Co Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebitda 8.305.978.979.607.7210.1912.4812.2714.0915.07

Toro Co Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebitda 11.5112.2714.4314.1013.7814.0913.6614.4914.9015.07
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