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GuruFocus has detected 5 Warning Signs with The Wendy's Co $WEN.
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The Wendy's Co (NAS:WEN)
EV/EBITDA
6.50 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, The Wendy's Co's enterprise value is $3,471 Mil. The Wendy's Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $534 Mil. Therefore, The Wendy's Co's EV/EBITDA ratio for today is 6.50.

WEN' s EV/EBITDA Range Over the Past 10 Years
Min: -21.6   Max: 32.2
Current: 7.88

-21.6
32.2

During the past 13 years, the highest EV/EBITDA Ratio of The Wendy's Co was 32.20. The lowest was -21.60. And the median was 10.60.

WEN's EV/EBITDA is ranked higher than
67% of the 281 Companies
in the Global Restaurants industry.

( Industry Median: 12.49 vs. WEN: 7.88 )

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, The Wendy's Co's stock price is $14.13. The Wendy's Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $0.64. Therefore, The Wendy's Co's P/E Ratio for today is 22.08.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=3470.680/534.288
=6.50

The Wendy's Co's current Enterprise Value is $3,471 Mil.
The Wendy's Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 203.631 (Dec. 2015 ) + 97.381 (Mar. 2016 ) + 97.328 (Jun. 2016 ) + 135.948 (Sep. 2016 ) = $534 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=14.13/0.64
=22.08

The Wendy's Co's share price for today is $14.13.
The Wendy's Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.27 (Dec. 2015 ) + 0.09 (Mar. 2016 ) + 0.1 (Jun. 2016 ) + 0.18 (Sep. 2016 ) = $0.64.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

The Wendy's Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 10.49-7.8011.059.8810.4511.8912.9611.0210.647.88

The Wendy's Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 9.7611.0214.9815.3012.6810.6410.319.729.417.88
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