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Time Warner Inc (NYSE:TWX)
EV/EBITDA
10.30 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Time Warner Inc's enterprise value is $80,382 Mil. Time Warner Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $7,805 Mil. Therefore, Time Warner Inc's EV/EBITDA ratio for today is 10.30.

TWX' s EV/EBITDA Range Over the Past 10 Years
Min: 3.4   Max: 14.9
Current: 10.29

3.4
14.9

During the past 13 years, the highest EV/EBITDA Ratio of Time Warner Inc was 14.90. The lowest was 3.40. And the median was 6.30.

TWX's EV/EBITDA is ranked higher than
54% of the 328 Companies
in the Global Media - Diversified industry.

( Industry Median: 11.07 vs. TWX: 10.29 )

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, Time Warner Inc's stock price is $74.07. Time Warner Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $4.99. Therefore, Time Warner Inc's P/E Ratio for today is 14.86.

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


Definition

Time Warner Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=80382.236/7805
=10.30

Time Warner Inc's current Enterprise Value is $80,382 Mil.
Time Warner Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 1956 (Jun. 2015 ) + 1999 (Sep. 2015 ) + 1664 (Dec. 2015 ) + 2186 (Mar. 2016 ) = $7,805 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.

Time Warner Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=74.07/4.986
=14.86

Time Warner Inc's share price for today is $74.07.
Time Warner Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 1.16 (Jun. 2015 ) + 1.26 (Sep. 2015 ) + 1.056 (Dec. 2015 ) + 1.51 (Mar. 2016 ) = $4.99.

* 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.

Time Warner Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 6.094.7011.963.553.666.048.945.3113.679.73

Time Warner Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 5.314.735.119.0613.6714.2114.1010.229.7310.17
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