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Wendy's Co (NAS:WEN)
EV/EBITDA
10.05 (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 $4,260 Mil. Wendy's Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $424 Mil. Therefore, Wendy's Co's EV/EBITDA ratio for today is 10.05.

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 $8.64. Wendy's Co's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.34. Therefore, Wendy's Co's P/E Ratio for today is 25.19.

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)
=4260.012/423.873
=10.05

Wendy's Co's current Enterprise Value is $4,260 Mil.
Wendy's Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 104.064 (Dec. 2013 ) + 132.033 (Mar. 2014 ) + 104.206 (Jun. 2014 ) + 83.57 (Sep. 2014 ) = $424 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)
=8.64/0.343
=25.19

Wendy's Co's share price for today is $8.64.
Wendy's Co's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.083 (Dec. 2013 ) + 0.12 (Mar. 2014 ) + 0.08 (Jun. 2014 ) + 0.06 (Sep. 2014 ) = $0.34.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 17.3830.4412.639.95-7.9410.458.8810.3611.8913.13

Wendy's Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 10.8312.6111.8914.2012.8913.9813.1311.4010.189.74
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