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GuruFocus has detected 5 Warning Signs with Avery Dennison Corp $AVY.
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Avery Dennison Corp (NYSE:AVY)
EV-to-EBITDA
12.77 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Avery Dennison Corp's enterprise value is $9,335 Mil. Avery Dennison Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $731 Mil. Therefore, Avery Dennison Corp's EV/EBITDA ratio for today is 12.77.

AVY' s EV-to-EBITDA Range Over the Past 10 Years
Min: -15.6   Max: 13.3
Current: 12.75

-15.6
13.3

During the past 13 years, the highest EV/EBITDA Ratio of Avery Dennison Corp was 13.30. The lowest was -15.60. And the median was 9.50.

AVY's EV-to-EBITDA is ranked higher than
52% of the 1555 Companies
in the Global Business Equipment industry.

( Industry Median: 12.86 vs. AVY: 12.75 )

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, Avery Dennison Corp's stock price is $90.86. Avery Dennison Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $3.80. Therefore, Avery Dennison Corp's P/E Ratio for today is 23.91.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9334.860/731.2
=12.77

Avery Dennison Corp's current Enterprise Value is $9,335 Mil.
Avery Dennison Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 159.8 (Jun. 2016 ) + 188.8 (Sep. 2016 ) + 185.4 (Dec. 2016 ) + 197.2 (Mar. 2017 ) = $731 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=90.86/3.8
=23.91

Avery Dennison Corp's share price for today is $90.86.
Avery Dennison Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.88 (Jun. 2016 ) + 0.98 (Sep. 2016 ) + 0.69 (Dec. 2016 ) + 1.25 (Mar. 2017 ) = $3.80.

* 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.

Avery Dennison Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 10.378.40-12.1610.117.638.438.719.0410.0710.18

Avery Dennison Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 9.049.079.788.9910.0711.0911.3011.7710.1811.55
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