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Watsco Inc (NYSE:WSO)
EV/EBITDA
13.84 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Watsco Inc's enterprise value is $4,313 Mil. Watsco Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $312 Mil. Therefore, Watsco Inc's EV/EBITDA ratio for today is 13.84.

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, Watsco Inc's stock price is $106.27. Watsco Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.18. Therefore, Watsco Inc's P/E Ratio for today is 25.45.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4312.875/311.717
=13.84

Watsco Inc's current Enterprise Value is $4,313 Mil.
Watsco Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 44.598 (Dec. 2013 ) + 39.987 (Mar. 2014 ) + 117.393 (Jun. 2014 ) + 109.739 (Sep. 2014 ) = $312 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=106.27/4.176
=25.45

Watsco Inc's share price for today is $106.27.
Watsco Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.536 (Dec. 2013 ) + 0.48 (Mar. 2014 ) + 1.6 (Jun. 2014 ) + 1.56 (Sep. 2014 ) = $4.18.

* 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.

Watsco Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 10.4613.549.349.1310.0918.8211.8811.2512.8815.39

Watsco Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 13.5712.8612.8813.8113.1313.6215.3913.5013.8911.69
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