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Microsoft Corp  (NAS:MSFT) EV-to-EBITDA: 16.44 (As of Today)

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Microsoft Corp's enterprise value is $561,421 Mil. Microsoft Corp's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was $34,149 Mil. Therefore, Microsoft Corp's EV-to-EBITDA for today is 16.44.

NAS:MSFT' s EV-to-EBITDA Range Over the Past 10 Years
Min: 4.3   Max: 17.1
Current: 16.44

4.3
17.1

During the past 13 years, the highest EV-to-EBITDA of Microsoft Corp was 17.10. The lowest was 4.30. And the median was 8.90.

NAS:MSFT's EV-to-EBITDA is ranked lower than
51% of the 1386 Companies
in the Global industry.

( Industry Median: 15.27 vs. NAS:MSFT: 16.44 )

EV-to-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 PE Ratio to determine the fair market value of a company.

As of today, Microsoft Corp's stock price is $78.83. Microsoft Corp's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2017 was $2.71. Therefore, Microsoft Corp's PE Ratio for today is 29.09.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Microsoft Corp Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
EV-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.25 8.34 11.41 12.30 14.19

Microsoft Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
EV-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.30 13.80 15.10 14.95 14.19

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Microsoft Corp's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=561420.577/34149
=16.44

Microsoft Corp's current Enterprise Value is $561,421 Mil.
Microsoft Corp's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was 7578 (Sep. 2016 ) + 9050 (Dec. 2016 ) + 8978 (Mar. 2017 ) + 8543 (Jun. 2017 ) = $34,149 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV-to-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 PE Ratio to determine the fair market value of a company.

Microsoft Corp's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=78.83/2.71
=29.09

Microsoft Corp's share price for today is $78.83.
Microsoft Corp's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2017 was 0.6 (Sep. 2016 ) + 0.66 (Dec. 2016 ) + 0.61 (Mar. 2017 ) + 0.84 (Jun. 2017 ) = $2.71.

* 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-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio.

Please read Which price ratio outperforms the enterprise multiple?


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