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GuruFocus has detected 2 Warning Signs with Encana Corp $ECA.
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Encana Corp (NYSE:ECA)
EV-to-EBITDA
21.88 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Encana Corp's enterprise value is $14,463 Mil. Encana Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $661 Mil. Therefore, Encana Corp's EV/EBITDA ratio for today is 21.88.

ECA' s EV-to-EBITDA Range Over the Past 10 Years
Min: -47.6   Max: 85.6
Current: 21.48

-47.6
85.6

During the past 13 years, the highest EV/EBITDA Ratio of Encana Corp was 85.60. The lowest was -47.60. And the median was 3.95.

ECA's EV-to-EBITDA is ranked lower than
99.99% of the 399 Companies
in the Global Oil & Gas E&P industry.

( Industry Median: 12.98 vs. ECA: 21.48 )

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, Encana Corp's stock price is $10.75. Encana Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $-0.19. Therefore, Encana Corp's P/E Ratio for today is .

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=14462.646/661
=21.88

Encana Corp's current Enterprise Value is $14,463 Mil.
Encana Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was -731 (Jun. 2016 ) + 662 (Sep. 2016 ) + 21 (Dec. 2016 ) + 709 (Mar. 2017 ) = $661 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=10.75/-0.19
=

Encana Corp's share price for today is $10.75.
Encana Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was -0.71 (Jun. 2016 ) + 0.37 (Sep. 2016 ) + -0.29 (Dec. 2016 ) + 0.44 (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.

Encana Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 3.792.544.024.785.55-7.868.732.66-1.79-43.70

Encana Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 2.664.3220.92-2.78-1.79-2.61-3.99-13.79-43.7022.68
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