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GuruFocus has detected 4 Warning Signs with AK Steel Holding Corp $AKS.
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AK Steel Holding Corp (NYSE:AKS)
EV-to-EBITDA
7.40 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, AK Steel Holding Corp's enterprise value is $3,857 Mil. AK Steel Holding Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $521 Mil. Therefore, AK Steel Holding Corp's EV/EBITDA ratio for today is 7.40.

AKS' s EV-to-EBITDA Range Over the Past 10 Years
Min: -317.3   Max: 115.5
Current: 7.4

-317.3
115.5

During the past 13 years, the highest EV/EBITDA Ratio of AK Steel Holding Corp was 115.50. The lowest was -317.30. And the median was 9.60.

AKS's EV-to-EBITDA is ranked higher than
54% of the 582 Companies
in the Global Steel industry.

( Industry Median: 11.07 vs. AKS: 7.40 )

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, AK Steel Holding Corp's stock price is $5.80. AK Steel Holding Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $0.19. Therefore, AK Steel Holding Corp's P/E Ratio for today is 30.53.

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


Definition

AK Steel Holding Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=3857.290/521
=7.40

AK Steel Holding Corp's current Enterprise Value is $3,857 Mil.
AK Steel Holding Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 123.6 (Jun. 2016 ) + 181.9 (Sep. 2016 ) + 48.5 (Dec. 2016 ) + 167 (Mar. 2017 ) = $521 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

AK Steel Holding Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.80/0.19
=30.53

AK Steel Holding Corp's share price for today is $5.80.
AK Steel Holding Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.08 (Jun. 2016 ) + 0.21 (Sep. 2016 ) + -0.29 (Dec. 2016 ) + 0.19 (Mar. 2017 ) = $0.19.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

AK Steel Holding Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 7.264.4015.9330.82-288.2525.548.7111.22112.3311.33

AK Steel Holding Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 11.2224.8926.7518.21112.3310.779.648.6311.338.24
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