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Wal-Mart Stores Inc (NYSE:WMT)
EV/EBITDA
8.22 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Wal-Mart Stores Inc's enterprise value is $295,728 Mil. Wal-Mart Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2014 was $35,668 Mil. Therefore, Wal-Mart Stores Inc's EV/EBITDA ratio for today is 8.22.

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, Wal-Mart Stores Inc's stock price is $74.88. Wal-Mart Stores Inc's earnings per share for the trailing twelve months (TTM) ended in Apr. 2014 was $4.85. Therefore, Wal-Mart Stores Inc's P/E Ratio for today is 15.40.

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


Definition

Wal-Mart Stores Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=295727.951/35668
=8.29

Wal-Mart Stores Inc's current Enterprise Value is $295,728 Mil.
Wal-Mart Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was 9052 (Jul. 2013 ) + 8505 (Oct. 2013 ) + 9644 (Jan. 2014 ) + 8467 (Apr. 2014 ) = $35,668 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.

Wal-Mart Stores Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=74.88/4.85
=15.44

Wal-Mart Stores Inc's share price for today is $74.88.
Wal-Mart Stores Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Apr. 2014 was 1.24 (Jul. 2013 ) + 1.14 (Oct. 2013 ) + 1.36 (Jan. 2014 ) + 1.11 (Apr. 2014 ) = $4.85.

* 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.

Wal-Mart Stores Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
ev2ebitda 11.489.628.808.457.447.597.247.487.768.23

Wal-Mart Stores Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ev2ebitda 7.088.418.447.768.448.358.278.238.740.00
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