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Westinghouse Air Brake Technologies Corp (NYSE:WAB)
EV/EBITDA
16.16 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Westinghouse Air Brake Technologies Corp's enterprise value is $9,029 Mil. Westinghouse Air Brake Technologies Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $560 Mil. Therefore, Westinghouse Air Brake Technologies Corp's EV/EBITDA ratio for today is 16.16.

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, Westinghouse Air Brake Technologies Corp's stock price is $90.49. Westinghouse Air Brake Technologies Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $3.43. Therefore, Westinghouse Air Brake Technologies Corp's P/E Ratio for today is 26.40.

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


Definition

Westinghouse Air Brake Technologies Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9029.353/560.399
=16.11

Westinghouse Air Brake Technologies Corp's current Enterprise Value is $9,029 Mil.
Westinghouse Air Brake Technologies Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 125.276 (Dec. 2013 ) + 135.424 (Mar. 2014 ) + 146.607 (Jun. 2014 ) + 153.092 (Sep. 2014 ) = $560 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.

Westinghouse Air Brake Technologies Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=90.49/3.433
=26.36

Westinghouse Air Brake Technologies Corp's share price for today is $90.49.
Westinghouse Air Brake Technologies Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.763 (Dec. 2013 ) + 0.83 (Mar. 2014 ) + 0.91 (Jun. 2014 ) + 0.93 (Sep. 2014 ) = $3.43.

* 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.

Westinghouse Air Brake Technologies Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 12.9210.449.417.778.969.9911.3210.999.8114.93

Westinghouse Air Brake Technologies Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 10.199.869.8111.4411.5313.2314.9314.9815.5514.56
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