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GuruFocus has detected 5 Warning Signs with Frontline Ltd $FRO.
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Frontline Ltd (NYSE:FRO)
EV-to-EBITDA
6.76 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Frontline Ltd's enterprise value is USD 2,140.1 Mil. Frontline Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was USD 316.8 Mil. Therefore, Frontline Ltd's EV/EBITDA ratio for today is 6.76.

FRO' s EV-to-EBITDA Range Over the Past 10 Years
Min: -9.4   Max: 429.8
Current: 6.7

-9.4
429.8

During the past 13 years, the highest EV/EBITDA Ratio of Frontline Ltd was 429.80. The lowest was -9.40. And the median was 7.20.

FRO's EV-to-EBITDA is ranked higher than
89% of the 928 Companies
in the Global Shipping & Ports industry.

( Industry Median: 10.34 vs. FRO: 6.70 )

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, Frontline Ltd's stock price is USD 5.63. Frontline Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was USD 0.75. Therefore, Frontline Ltd's P/E Ratio for today is 7.51.

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


Definition

Frontline Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2140.145/316.782
=6.76

Frontline Ltd's current Enterprise Value is USD 2,140.1 Mil.
Frontline Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 131.032 (Mar. 2016 ) + 63.759 (Jun. 2016 ) + 54.871 (Sep. 2016 ) + 67.12 (Dec. 2016 ) = USD 316.8 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.

Frontline Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.63/0.75
=7.51

Frontline Ltd's share price for today is USD 5.63.
Frontline Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.5 (Mar. 2016 ) + 0.1 (Jun. 2016 ) + 0.03 (Sep. 2016 ) + 0.12 (Dec. 2016 ) = USD 0.75.

* 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.

Frontline Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.314.679.388.80-8.9259.4514.054.7310.387.25

Frontline Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 8.874.734.812.392.2510.386.287.027.207.25
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