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Wal-Mart Stores Inc (NYSE:WMT)
EV/EBITDA
7.97 (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 $290,231 Mil. Wal-Mart Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2015 was $36,433 Mil. Therefore, Wal-Mart Stores Inc's EV/EBITDA ratio for today is 7.97.

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 $75.86. Wal-Mart Stores Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2015 was $5.05. Therefore, Wal-Mart Stores Inc's P/E Ratio for today is 15.02.

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)
=290231.100/36433
=7.97

Wal-Mart Stores Inc's current Enterprise Value is $290,231 Mil.
Wal-Mart Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2015 was 8467 (Apr. 2014 ) + 9049 (Jul. 2014 ) + 8639 (Oct. 2014 ) + 10278 (Jan. 2015 ) = $36,433 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)
=75.86/5.051
=15.02

Wal-Mart Stores Inc's share price for today is $75.86.
Wal-Mart Stores Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2015 was 1.11 (Apr. 2014 ) + 1.26 (Jul. 2014 ) + 1.15 (Oct. 2014 ) + 1.531 (Jan. 2015 ) = $5.05.

* 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
ev2ebitda 9.608.778.467.417.577.257.487.788.248.78

Wal-Mart Stores Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebitda 8.457.788.468.378.298.248.748.138.378.78
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