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GuruFocus has detected 3 Warning Signs with NTT DOCOMO Inc $DCM.
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NTT DOCOMO Inc (NYSE:DCM)
EV-to-EBITDA
6.77 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, NTT DOCOMO Inc's enterprise value is $87,767 Mil. NTT DOCOMO Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $12,971 Mil. Therefore, NTT DOCOMO Inc's EV/EBITDA ratio for today is 6.77.

DCM' s EV-to-EBITDA Range Over the Past 10 Years
Min: 2.8   Max: 8.1
Current: 6.97

2.8
8.1

During the past 13 years, the highest EV/EBITDA Ratio of NTT DOCOMO Inc was 8.10. The lowest was 2.80. And the median was 4.15.

DCM's EV-to-EBITDA is ranked higher than
63% of the 387 Companies
in the Global Telecom Services industry.

( Industry Median: 8.61 vs. DCM: 6.97 )

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, NTT DOCOMO Inc's stock price is $24.31. NTT DOCOMO Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.63. Therefore, NTT DOCOMO Inc's P/E Ratio for today is 14.96.

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


Definition

NTT DOCOMO Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=87767.152/12970.8059928
=6.77

NTT DOCOMO Inc's current Enterprise Value is $87,767 Mil.
NTT DOCOMO Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 3846.64013312 (Jun. 2016 ) + 3898.55802909 (Sep. 2016 ) + 3266.37246645 (Dec. 2016 ) + 1959.23536419 (Mar. 2017 ) = $12,971 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.

NTT DOCOMO Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=24.31/1.62553901787
=14.96

NTT DOCOMO Inc's share price for today is $24.31.
NTT DOCOMO Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.523014041646 (Jun. 2016 ) + 0.522772176063 (Sep. 2016 ) + 0.427162169036 (Dec. 2016 ) + 0.15259063113 (Mar. 2017 ) = $1.63.

* 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.

NTT DOCOMO Inc Annual Data

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
ev2ebitda 3.933.543.763.663.263.684.176.136.776.61

NTT DOCOMO Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 5.006.136.915.636.956.777.316.406.736.61
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