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Zimmer Holdings Inc (NYSE:ZMH)
EV/EBITDA
12.46 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Zimmer Holdings Inc's enterprise value is $18,616 Mil. Zimmer Holdings Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,490 Mil. Therefore, Zimmer Holdings Inc's EV/EBITDA ratio for today is 12.46.

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, Zimmer Holdings Inc's stock price is $110.34. Zimmer Holdings Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.64. Therefore, Zimmer Holdings Inc's P/E Ratio for today is 23.80.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=18615.800/1489.6
=12.50

Zimmer Holdings Inc's current Enterprise Value is $18,616 Mil.
Zimmer Holdings Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 409.6 (Dec. 2013 ) + 401.9 (Mar. 2014 ) + 343.5 (Jun. 2014 ) + 334.6 (Sep. 2014 ) = $1,490 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=110.34/4.639
=23.79

Zimmer Holdings Inc's share price for today is $110.34.
Zimmer Holdings Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.359 (Dec. 2013 ) + 1.29 (Mar. 2014 ) + 1.03 (Jun. 2014 ) + 0.96 (Sep. 2014 ) = $4.64.

* 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.

Zimmer Holdings Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 21.3413.3513.6111.176.839.178.527.188.2111.13

Zimmer Holdings Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 7.988.348.219.229.9110.9511.1311.2012.0411.49
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