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Valspar Corporation (NYSE:VAL)
EV/EBITDA
12.52 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Valspar Corporation's enterprise value is $7,399 Mil. Valspar Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $587 Mil. Therefore, Valspar Corporation's EV/EBITDA ratio for today is 12.52.

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, Valspar Corporation's stock price is $72.01. Valspar Corporation's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $3.21. Therefore, Valspar Corporation's P/E Ratio for today is 22.50.

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


Definition

Valspar Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7399.369/586.893
=12.61

Valspar Corporation's current Enterprise Value is $7,399 Mil.
Valspar Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 152.101 (Apr. 2013 ) + 174.36 (Jul. 2013 ) + 137.101 (Oct. 2013 ) + 123.331 (Jan. 2014 ) = $587 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.

Valspar Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=72.01/3.207
=22.45

Valspar Corporation's share price for today is $72.01.
Valspar Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.84 (Apr. 2013 ) + 1.04 (Jul. 2013 ) + 0.717 (Oct. 2013 ) + 0.61 (Jan. 2014 ) = $3.21.

* 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.

Valspar Corporation Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 9.308.619.338.757.828.668.5773.8110.2812.71

Valspar Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 73.8158.3149.3937.5810.2812.0511.7311.9912.7112.50
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