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United Rentals Inc (NYSE:URI)
EV/EBITDA
7.64 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, United Rentals Inc's enterprise value is $18,391 Mil. United Rentals Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,406 Mil. Therefore, United Rentals Inc's EV/EBITDA ratio for today is 7.64.

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, United Rentals Inc's stock price is $104.84. United Rentals Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.62. Therefore, United Rentals Inc's P/E Ratio for today is 22.71.

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


Definition

United Rentals Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=18391.011/2406
=7.64

United Rentals Inc's current Enterprise Value is $18,391 Mil.
United Rentals Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 985 (Dec. 2013 ) + 371 (Mar. 2014 ) + 441 (Jun. 2014 ) + 609 (Sep. 2014 ) = $2,406 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.

United Rentals Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=104.84/4.616
=22.71

United Rentals Inc's share price for today is $104.84.
United Rentals Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.316 (Dec. 2013 ) + 0.56 (Mar. 2014 ) + 0.9 (Jun. 2014 ) + 1.84 (Sep. 2014 ) = $4.62.

* 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.

United Rentals Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 7.875.974.112.97-32.055.966.345.557.666.21

United Rentals Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 10.278.417.667.176.527.086.217.137.827.96
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