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GuruFocus has detected 3 Warning Signs with Group 1 Automotive Inc $GPI.
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Group 1 Automotive Inc (NYSE:GPI)
EV-to-EBITDA
10.71 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Group 1 Automotive Inc's enterprise value is $4,005 Mil. Group 1 Automotive Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $374 Mil. Therefore, Group 1 Automotive Inc's EV/EBITDA ratio for today is 10.71.

GPI' s EV-to-EBITDA Range Over the Past 10 Years
Min: -644.1   Max: 105.5
Current: 10.7

-644.1
105.5

During the past 13 years, the highest EV/EBITDA Ratio of Group 1 Automotive Inc was 105.50. The lowest was -644.10. And the median was 12.00.

GPI's EV-to-EBITDA is ranked lower than
61% of the 1412 Companies
in the Global Auto & Truck Dealerships industry.

( Industry Median: 9.05 vs. GPI: 10.70 )

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, Group 1 Automotive Inc's stock price is $61.90. Group 1 Automotive Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $6.79. Therefore, Group 1 Automotive Inc's P/E Ratio for today is 9.12.

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


Definition

Group 1 Automotive Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4005.336/374.002
=10.71

Group 1 Automotive Inc's current Enterprise Value is $4,005 Mil.
Group 1 Automotive Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 93.368 (Jun. 2016 ) + 96.807 (Sep. 2016 ) + 90.084 (Dec. 2016 ) + 93.743 (Mar. 2017 ) = $374 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.

Group 1 Automotive Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=61.90/6.79
=9.12

Group 1 Automotive Inc's share price for today is $61.90.
Group 1 Automotive Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 2.12 (Jun. 2016 ) + 1.65 (Sep. 2016 ) + 1.44 (Dec. 2016 ) + 1.58 (Mar. 2017 ) = $6.79.

* 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.

Group 1 Automotive Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 10.0152.2811.7812.4710.9912.5713.2615.4714.5611.68

Group 1 Automotive Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 15.4714.6714.2412.6814.5613.2912.5713.5411.6811.41
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