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Toro Co (NYSE:TTC)
EV/EBITDA
12.36 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Toro Co's enterprise value is $3,526 Mil. Toro Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $285 Mil. Therefore, Toro Co's EV/EBITDA ratio for today is 12.36.

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 $62.26. Toro Co's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $3.01. Therefore, Toro Co's P/E Ratio for today is 20.68.

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)
=3525.901/285.156
=12.36

Toro Co's current Enterprise Value is $3,526 Mil.
Toro Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 55.793 (Jan. 2014 ) + 132.799 (Apr. 2014 ) + 74.427 (Jul. 2014 ) + 22.137 (Oct. 2014 ) = $285 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=62.26/3.01
=20.68

Toro Co's share price for today is $62.26.
Toro Co's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.44 (Jan. 2014 ) + 1.51 (Apr. 2014 ) + 0.87 (Jul. 2014 ) + 0.19 (Oct. 2014 ) = $3.01.

* 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.

Toro Co Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 8.037.287.468.655.978.119.007.279.5913.21

Toro Co Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 8.469.599.669.7910.8513.2114.7213.8412.2912.20
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