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GuruFocus has detected 6 Warning Signs with Procter & Gamble Co $PG.
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Procter & Gamble Co (NYSE:PG)
EV-to-EBITDA
14.64 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Procter & Gamble Co's enterprise value is $240,957 Mil. Procter & Gamble Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $16,454 Mil. Therefore, Procter & Gamble Co's EV/EBITDA ratio for today is 14.64.

PG' s EV-to-EBITDA Range Over the Past 10 Years
Min: 9.2   Max: 18
Current: 14.64

9.2
18

During the past 13 years, the highest EV/EBITDA Ratio of Procter & Gamble Co was 18.00. The lowest was 9.20. And the median was 13.70.

PG's EV-to-EBITDA is ranked higher than
98% of the 1719 Companies
in the Global Household & Personal Products industry.

( Industry Median: 12.42 vs. PG: 14.64 )

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, Procter & Gamble Co's stock price is $87.25. Procter & Gamble Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $5.46. Therefore, Procter & Gamble Co's P/E Ratio for today is 15.98.

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


Definition

Procter & Gamble Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=240956.855/16454
=14.64

Procter & Gamble Co's current Enterprise Value is $240,957 Mil.
Procter & Gamble Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 3675 (Jun. 2016 ) + 4597 (Sep. 2016 ) + 4085 (Dec. 2016 ) + 4097 (Mar. 2017 ) = $16,454 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.

Procter & Gamble Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=87.25/5.46
=15.98

Procter & Gamble Co's share price for today is $87.25.
Procter & Gamble Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.69 (Jun. 2016 ) + 0.96 (Sep. 2016 ) + 2.88 (Dec. 2016 ) + 0.93 (Mar. 2017 ) = $5.46.

* 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.

Procter & Gamble Co Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebitda 11.6111.439.7010.4211.0111.8413.3813.6915.7614.38

Procter & Gamble Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 16.5415.1415.7614.5215.4615.6014.3815.1414.0915.05
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