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Wal-Mart Stores Inc (NYSE:WMT)
EV/EBITDA
8.36 (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 $299,815 Mil. Wal-Mart Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $35,895 Mil. Therefore, Wal-Mart Stores Inc's EV/EBITDA ratio for today is 8.36.

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 $77.56. Wal-Mart Stores Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $4.88. Therefore, Wal-Mart Stores Inc's P/E Ratio for today is 15.90.

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)
=299814.844/35895
=8.35

Wal-Mart Stores Inc's current Enterprise Value is $299,815 Mil.
Wal-Mart Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 8694 (Apr. 2013 ) + 9052 (Jul. 2013 ) + 8505 (Oct. 2013 ) + 9644 (Jan. 2014 ) = $35,895 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)
=77.56/4.882
=15.89

Wal-Mart Stores Inc's share price for today is $77.56.
Wal-Mart Stores Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 1.14 (Apr. 2013 ) + 1.24 (Jul. 2013 ) + 1.14 (Oct. 2013 ) + 1.362 (Jan. 2014 ) = $4.88.

* 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 11.479.608.778.467.417.577.257.487.788.23

Wal-Mart Stores Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 7.307.487.088.418.457.788.458.368.288.23
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