Switch to:
Williams Companies Inc (NYSE:WMB)
EV/EBITDA
12.77 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Williams Companies Inc's enterprise value is $70,718 Mil. Williams Companies Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $5,536 Mil. Therefore, Williams Companies Inc's EV/EBITDA ratio for today is 12.77.

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, Williams Companies Inc's stock price is $50.64. Williams Companies Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $2.83. Therefore, Williams Companies Inc's P/E Ratio for today is 17.91.

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


Definition

Williams Companies Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=70718.300/5536
=12.77

Williams Companies Inc's current Enterprise Value is $70,718 Mil.
Williams Companies Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 601 (Mar. 2014 ) + 613 (Jun. 2014 ) + 3285 (Sep. 2014 ) + 1037 (Dec. 2014 ) = $5,536 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.

Williams Companies Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=50.64/2.827
=17.91

Williams Companies Inc's share price for today is $50.64.
Williams Companies Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.2 (Mar. 2014 ) + 0.15 (Jun. 2014 ) + 2.22 (Sep. 2014 ) + 0.257 (Dec. 2014 ) = $2.83.

* 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.

Williams Companies Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 8.339.257.263.375.618.537.2113.4417.0012.00

Williams Companies Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 12.2613.4415.7914.1415.4517.0018.4026.9614.6212.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK