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GuruFocus has detected 5 Warning Signs with Fortune Brands Home & Security Inc $FBHS.
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Fortune Brands Home & Security Inc (NYSE:FBHS)
EV-to-EBITDA
14.74 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Fortune Brands Home & Security Inc's enterprise value is $11,421 Mil. Fortune Brands Home & Security Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $775 Mil. Therefore, Fortune Brands Home & Security Inc's EV/EBITDA ratio for today is 14.74.

FBHS' s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.3   Max: 39.4
Current: 14.74

7.3
39.4

During the past 8 years, the highest EV/EBITDA Ratio of Fortune Brands Home & Security Inc was 39.40. The lowest was 7.30. And the median was 17.10.

FBHS's EV-to-EBITDA is ranked lower than
58% of the 639 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 12.46 vs. FBHS: 14.74 )

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, Fortune Brands Home & Security Inc's stock price is $65.90. Fortune Brands Home & Security Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $2.74. Therefore, Fortune Brands Home & Security Inc's P/E Ratio for today is 24.05.

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


Definition

Fortune Brands Home & Security Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11420.550/774.8
=14.74

Fortune Brands Home & Security Inc's current Enterprise Value is $11,421 Mil.
Fortune Brands Home & Security Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 217.1 (Jun. 2016 ) + 212.4 (Sep. 2016 ) + 197.8 (Dec. 2016 ) + 147.5 (Mar. 2017 ) = $775 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.

Fortune Brands Home & Security Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=65.90/2.74
=24.05

Fortune Brands Home & Security Inc's share price for today is $65.90.
Fortune Brands Home & Security Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.8 (Jun. 2016 ) + 0.78 (Sep. 2016 ) + 0.66 (Dec. 2016 ) + 0.5 (Mar. 2017 ) = $2.74.

* 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.

Fortune Brands Home & Security Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 0.000.000.000.0031.2919.5119.3715.2516.1612.51

Fortune Brands Home & Security Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 15.2516.4216.9415.9516.1616.1215.1014.7412.5113.71
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