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Zimmer Holdings Inc (NYSE:ZMH)
EV/EBITDA
20.08 (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 \$19,695 Mil. Zimmer Holdings Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was \$981 Mil. Therefore, Zimmer Holdings Inc's EV/EBITDA ratio for today is 20.08.

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 \$117.50. Zimmer Holdings Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was \$2.90. Therefore, Zimmer Holdings Inc's P/E Ratio for today is 40.53.

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) = 19695.101 / 980.9 = 20.08

Zimmer Holdings Inc's current Enterprise Value is \$19,695 Mil.
Zimmer Holdings Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 0 (May. 2014 ) + 343.5 (Jun. 2014 ) + 334.6 (Sep. 2014 ) + 302.8 (Dec. 2014 ) = \$981 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) = 117.50 / 2.899 = 40.53

Zimmer Holdings Inc's share price for today is \$117.50.
Zimmer Holdings Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0 (May. 2014 ) + 1.03 (Jun. 2014 ) + 0.96 (Sep. 2014 ) + 0.909 (Dec. 2014 ) = \$2.90.

* 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.

Related Terms

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

 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 May14 ev2ebitda 13.35 13.61 11.17 6.83 9.17 8.49 7.18 8.21 11.13 15.65

Zimmer Holdings Inc Quarterly Data

 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 May14 Jun14 Sep14 Dec14 ev2ebitda 8.21 9.22 9.91 10.95 11.13 11.20 15.65 15.17 15.70 19.31
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