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Wendy's Co (NAS:WEN)
EV/EBITDA
14.26 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Wendy's Co's enterprise value is $5,286 Mil. Wendy's Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $371 Mil. Therefore, Wendy's Co's EV/EBITDA ratio for today is 14.26.

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, Wendy's Co's stock price is $11.12. Wendy's Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $0.27. Therefore, Wendy's Co's P/E Ratio for today is 40.73.

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


Definition

Wendy's Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5285.951/370.677
=14.26

Wendy's Co's current Enterprise Value is $5,286 Mil.
Wendy's Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 104.206 (Jun. 2014 ) + 83.57 (Sep. 2014 ) + 93.512 (Dec. 2014 ) + 89.389 (Mar. 2015 ) = $371 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.

Wendy's Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=11.12/0.273
=40.73

Wendy's Co's share price for today is $11.12.
Wendy's Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.08 (Jun. 2014 ) + 0.06 (Sep. 2014 ) + 0.063 (Dec. 2014 ) + 0.07 (Mar. 2015 ) = $0.27.

* 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.

Wendy's Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 30.4413.0010.49-7.809.119.8810.4511.8913.1310.84

Wendy's Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 11.8914.2012.8913.9813.1311.4010.119.7410.8414.04
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