Switch to:
Zale Corp (NYSE:ZLC)
EV/EBITDA
17.53 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Zale Corp's enterprise value is $1,328 Mil. Zale Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $76 Mil. Therefore, Zale Corp's EV/EBITDA ratio for today is 17.53.

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, Zale Corp's stock price is $21.13. Zale Corp's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $0.18. Therefore, Zale Corp's P/E Ratio for today is 114.80.

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


Definition

Zale Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1327.978/75.753
=17.53

Zale Corp's current Enterprise Value is $1,328 Mil.
Zale Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 18.244 (Apr. 2013 ) + 4.897 (Jul. 2013 ) + -14.371 (Oct. 2013 ) + 66.983 (Jan. 2014 ) = $76 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.

Zale Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=21.13/0.184
=114.84

Zale Corp's share price for today is $21.13.
Zale Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.13 (Apr. 2013 ) + -0.246 (Jul. 2013 ) + -0.83 (Oct. 2013 ) + 1.13 (Jan. 2014 ) = $0.18.

* 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.

Zale Corp Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
ev2ebitda 6.607.599.747.4412.68-2.75-5.5440.179.2210.10

Zale Corp Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 18.1516.1211.959.2213.379.798.9110.1014.6212.16
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK