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United Rentals Inc (NYSE:URI)
EV/EBITDA
6.39 (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 $16,603 Mil. United Rentals Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $2,599 Mil. Therefore, United Rentals Inc's EV/EBITDA ratio for today is 6.39.

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 $90.23. United Rentals Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $5.17. Therefore, United Rentals Inc's P/E Ratio for today is 17.45.

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)
=16602.929/2599
=6.39

United Rentals Inc's current Enterprise Value is $16,603 Mil.
United Rentals Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 371 (Mar. 2014 ) + 441 (Jun. 2014 ) + 609 (Sep. 2014 ) + 1178 (Dec. 2014 ) = $2,599 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)
=90.23/5.172
=17.45

United Rentals Inc's share price for today is $90.23.
United Rentals Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.56 (Mar. 2014 ) + 0.9 (Jun. 2014 ) + 1.84 (Sep. 2014 ) + 1.872 (Dec. 2014 ) = $5.17.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 6.054.253.09-32.325.946.335.547.326.546.88

United Rentals Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 10.507.327.396.286.386.547.137.817.916.88
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