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GuruFocus has detected 2 Warning Signs with Bed Bath & Beyond Inc $BBBY.
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Bed Bath & Beyond Inc (NAS:BBBY)
EV-to-EBITDA
4.25 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Bed Bath & Beyond Inc's enterprise value is $6,062 Mil. Bed Bath & Beyond Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $1,426 Mil. Therefore, Bed Bath & Beyond Inc's EV/EBITDA ratio for today is 4.25.

BBBY' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.25   Max: 11
Current: 4.25

4.25
11

During the past 13 years, the highest EV/EBITDA Ratio of Bed Bath & Beyond Inc was 11.00. The lowest was 4.25. And the median was 7.50.

BBBY's EV-to-EBITDA is ranked higher than
90% of the 1089 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.23 vs. BBBY: 4.25 )

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, Bed Bath & Beyond Inc's stock price is $34.85. Bed Bath & Beyond Inc's earnings per share for the trailing twelve months (TTM) ended in Feb. 2017 was $4.58. Therefore, Bed Bath & Beyond Inc's P/E Ratio for today is 7.61.

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


Definition

Bed Bath & Beyond Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6061.882/1426.124
=4.25

Bed Bath & Beyond Inc's current Enterprise Value is $6,062 Mil.
Bed Bath & Beyond Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was 283.471 (May. 2016 ) + 351.821 (Aug. 2016 ) + 285.154 (Nov. 2016 ) + 505.678 (Feb. 2017 ) = $1,426 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.

Bed Bath & Beyond Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=34.85/4.58
=7.61

Bed Bath & Beyond Inc's share price for today is $34.85.
Bed Bath & Beyond Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2017 was 0.8 (May. 2016 ) + 1.11 (Aug. 2016 ) + 0.85 (Nov. 2016 ) + 1.82 (Feb. 2017 ) = $4.58.

* 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.

Bed Bath & Beyond Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ev2ebitda 7.135.728.087.027.036.307.137.544.984.85

Bed Bath & Beyond Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebitda 7.807.547.366.365.834.984.795.065.174.85
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