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Willis Group Holdings PLC (NYSE:WSH)
EV/EBITDA
13.81 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Willis Group Holdings PLC's enterprise value is $10,493 Mil. Willis Group Holdings PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $760 Mil. Therefore, Willis Group Holdings PLC's EV/EBITDA ratio for today is 13.81.

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, Willis Group Holdings PLC's stock price is $48.34. Willis Group Holdings PLC's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $1.80. Therefore, Willis Group Holdings PLC's P/E Ratio for today is 26.90.

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


Definition

Willis Group Holdings PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10493.197/760
=13.81

Willis Group Holdings PLC's current Enterprise Value is $10,493 Mil.
Willis Group Holdings PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 181 (Jun. 2014 ) + 61 (Sep. 2014 ) + 195 (Dec. 2014 ) + 323 (Mar. 2015 ) = $760 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.

Willis Group Holdings PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=48.34/1.797
=26.90

Willis Group Holdings PLC's share price for today is $48.34.
Willis Group Holdings PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.26 (Jun. 2014 ) + -0.04 (Sep. 2014 ) + 0.427 (Dec. 2014 ) + 1.15 (Mar. 2015 ) = $1.80.

* 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.

Willis Group Holdings PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 12.0010.969.4711.207.758.8016.26-108.2312.3712.05

Willis Group Holdings PLC Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda -108.23-92.51-88.57-60.1012.370.2511.9511.3412.0513.78
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