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GuruFocus has detected 3 Warning Signs with Weatherford International PLC $WFT.
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Weatherford International PLC (NYSE:WFT)
EV-to-EBITDA
-10.29 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Weatherford International PLC's enterprise value is $13,323 Mil. Weatherford International PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $-1,295 Mil. Therefore, Weatherford International PLC's EV/EBITDA ratio for today is -10.29.

WFT' s EV-to-EBITDA Range Over the Past 10 Years
Min: -43.3   Max: 20.4
Current: -10.29

-43.3
20.4

During the past 13 years, the highest EV/EBITDA Ratio of Weatherford International PLC was 20.40. The lowest was -43.30. And the median was 10.40.

WFT's EV-to-EBITDA is ranked lower than
99.99% of the 225 Companies
in the Global Oil & Gas Equipment & Services industry.

( Industry Median: 11.53 vs. WFT: -10.29 )

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, Weatherford International PLC's stock price is $5.62. Weatherford International PLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $-3.77. Therefore, Weatherford International PLC's P/E Ratio for today is .

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


Definition

Weatherford International PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=13322.510/-1295
=-10.29

Weatherford International PLC's current Enterprise Value is $13,323 Mil.
Weatherford International PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was -197 (Mar. 2016 ) + -211 (Jun. 2016 ) + -703 (Sep. 2016 ) + -184 (Dec. 2016 ) = $-1,295 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.

Weatherford International PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.62/-3.77
=

Weatherford International PLC's share price for today is $5.62.
Weatherford International PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.61 (Mar. 2016 ) + -0.63 (Jun. 2016 ) + -1.98 (Sep. 2016 ) + -0.55 (Dec. 2016 ) = $-3.77.

* 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.

Weatherford International PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 12.074.8912.6414.367.5510.9010.498.52-39.20-8.55

Weatherford International PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 13.378.529.6013.6817.70-39.20-14.99-12.22-6.50-8.55
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