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Valero Energy Corporation (NYSE:VLO)
EV/EBITDA
5.29 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Valero Energy Corporation's enterprise value is $32,093 Mil. Valero Energy Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $6,067 Mil. Therefore, Valero Energy Corporation's EV/EBITDA ratio for today is 5.29.

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, Valero Energy Corporation's stock price is $56.00. Valero Energy Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $4.96. Therefore, Valero Energy Corporation's P/E Ratio for today is 11.30.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=32092.575/6067
=5.29

Valero Energy Corporation's current Enterprise Value is $32,093 Mil.
Valero Energy Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 1505 (Mar. 2013 ) + 1224 (Jun. 2013 ) + 997 (Sep. 2013 ) + 2341 (Dec. 2013 ) = $6,067 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=56.00/4.963
=11.28

Valero Energy Corporation's share price for today is $56.00.
Valero Energy Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 1.18 (Mar. 2013 ) + 0.85 (Jun. 2013 ) + 0.57 (Sep. 2013 ) + 2.363 (Dec. 2013 ) = $4.96.

* 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.

Valero Energy Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 3.995.423.364.626.619.214.683.133.944.89

Valero Energy Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 2.373.133.763.604.793.943.953.554.014.89
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