Switch to:
GuruFocus has detected 5 Warning Signs with Shire PLC $SHPG.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Shire PLC (NAS:SHPG)
EV-to-EBITDA
20.24 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Shire PLC's enterprise value is $74,657 Mil. Shire PLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $3,688 Mil. Therefore, Shire PLC's EV/EBITDA ratio for today is 20.24.

SHPG' s EV-to-EBITDA Range Over the Past 10 Years
Min: -16.9   Max: 33.2
Current: 20.58

-16.9
33.2

During the past 13 years, the highest EV/EBITDA Ratio of Shire PLC was 33.20. The lowest was -16.90. And the median was 14.00.

SHPG's EV-to-EBITDA is ranked lower than
54% of the 280 Companies
in the Global Biotechnology industry.

( Industry Median: 18.63 vs. SHPG: 20.58 )

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, Shire PLC's stock price is $172.98. Shire PLC's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.02. Therefore, Shire PLC's P/E Ratio for today is 169.59.

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


Definition

Shire PLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=74656.570/3688
=20.24

Shire PLC's current Enterprise Value is $74,657 Mil.
Shire PLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 658.2 (Jun. 2016 ) + 841.5 (Sep. 2016 ) + 1196.7 (Dec. 2016 ) + 991.6 (Mar. 2017 ) = $3,688 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.

Shire PLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=172.98/1.02
=169.59

Shire PLC's share price for today is $172.98.
Shire PLC's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was -0.72 (Jun. 2016 ) + -1.29 (Sep. 2016 ) + 1.8 (Dec. 2016 ) + 1.23 (Mar. 2017 ) = $1.02.

* 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.

Shire PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -11.3717.7011.9112.9714.1712.1712.0310.9421.4623.57

Shire PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 10.9413.4913.1211.6421.4619.4033.9232.3123.5721.14
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK