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GuruFocus has detected 1 Warning Sign with Transocean Ltd $RIG.
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Transocean Ltd (NYSE:RIG)
EV-to-EBITDA
4.22 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Transocean Ltd's enterprise value is $8,509 Mil. Transocean Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $2,014 Mil. Therefore, Transocean Ltd's EV/EBITDA ratio for today is 4.22.

RIG' s EV-to-EBITDA Range Over the Past 10 Years
Min: -90.6   Max: 25.4
Current: 4.22

-90.6
25.4

During the past 13 years, the highest EV/EBITDA Ratio of Transocean Ltd was 25.40. The lowest was -90.60. And the median was 6.50.

RIG's EV-to-EBITDA is ranked higher than
74% of the 46 Companies
in the Global Oil & Gas Drilling industry.

( Industry Median: 7.67 vs. RIG: 4.22 )

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, Transocean Ltd's stock price is $8.20. Transocean Ltd's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.64. Therefore, Transocean Ltd's P/E Ratio for today is 5.00.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8508.572/2014
=4.22

Transocean Ltd's current Enterprise Value is $8,509 Mil.
Transocean Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 424 (Jun. 2016 ) + 572 (Sep. 2016 ) + 604 (Dec. 2016 ) + 414 (Mar. 2017 ) = $2,014 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.20/1.64
=5.00

Transocean Ltd's share price for today is $8.20.
Transocean Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.21 (Jun. 2016 ) + 0.62 (Sep. 2016 ) + 0.58 (Dec. 2016 ) + 0.23 (Mar. 2017 ) = $1.64.

* 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.

Transocean Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 15.153.996.338.04-7.298.117.53-87.614.554.97

Transocean Ltd Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda -87.61-11.86-8.7810.324.553.143.973.804.975.06
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