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GuruFocus has detected 4 Warning Signs with Mohawk Industries Inc $MHK.
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Mohawk Industries Inc (NYSE:MHK)
EV-to-EBITDA
11.41 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mohawk Industries Inc's enterprise value is $19,756 Mil. Mohawk Industries Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,731 Mil. Therefore, Mohawk Industries Inc's EV/EBITDA ratio for today is 11.41.

MHK' s EV-to-EBITDA Range Over the Past 10 Years
Min: -12.9   Max: 28.4
Current: 11.41

-12.9
28.4

During the past 13 years, the highest EV/EBITDA Ratio of Mohawk Industries Inc was 28.40. The lowest was -12.90. And the median was 9.90.

MHK's EV-to-EBITDA is ranked lower than
51% of the 758 Companies
in the Global Home Furnishings & Fixtures industry.

( Industry Median: 11.39 vs. MHK: 11.41 )

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, Mohawk Industries Inc's stock price is $232.87. Mohawk Industries Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $12.86. Therefore, Mohawk Industries Inc's P/E Ratio for today is 18.11.

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


Definition

Mohawk Industries Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=19756.120/1731.342
=11.41

Mohawk Industries Inc's current Enterprise Value is $19,756 Mil.
Mohawk Industries Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 457.713 (Jun. 2016 ) + 478.148 (Sep. 2016 ) + 412.841 (Dec. 2016 ) + 382.64 (Mar. 2017 ) = $1,731 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.

Mohawk Industries Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=232.87/12.86
=18.11

Mohawk Industries Inc's share price for today is $232.87.
Mohawk Industries Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 3.42 (Jun. 2016 ) + 3.62 (Sep. 2016 ) + 3.14 (Dec. 2016 ) + 2.68 (Mar. 2017 ) = $12.86.

* 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.

Mohawk Industries Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.83-5.6813.018.349.0010.8615.4012.1814.4810.17

Mohawk Industries Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 12.1815.4016.2214.4614.4812.4111.1910.8510.1711.26
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