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GuruFocus has detected 3 Warning Signs with United Parcel Service Inc $UPS.
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United Parcel Service Inc (NYSE:UPS)
EV-to-EBITDA
11.23 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, United Parcel Service Inc's enterprise value is $86,515 Mil. United Parcel Service Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $7,702 Mil. Therefore, United Parcel Service Inc's EV/EBITDA ratio for today is 11.23.

UPS' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.9   Max: 35.8
Current: 11.21

6.9
35.8

During the past 13 years, the highest EV/EBITDA Ratio of United Parcel Service Inc was 35.80. The lowest was 6.90. And the median was 10.75.

UPS's EV-to-EBITDA is ranked lower than
66% of the 928 Companies
in the Global Integrated Shipping & Logistics industry.

( Industry Median: 10.34 vs. UPS: 11.21 )

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, United Parcel Service Inc's stock price is $105.94. United Parcel Service Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $3.93. Therefore, United Parcel Service Inc's P/E Ratio for today is 26.96.

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


Definition

United Parcel Service Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=86515.341/7702
=11.23

United Parcel Service Inc's current Enterprise Value is $86,515 Mil.
United Parcel Service Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 2601 (Jun. 2016 ) + 2601 (Sep. 2016 ) + 147 (Dec. 2016 ) + 2353 (Mar. 2017 ) = $7,702 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.

United Parcel Service Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=105.94/3.93
=26.96

United Parcel Service Inc's share price for today is $105.94.
United Parcel Service Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.43 (Jun. 2016 ) + 1.44 (Sep. 2016 ) + -0.26 (Dec. 2016 ) + 1.32 (Mar. 2017 ) = $3.93.

* 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.

United Parcel Service Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 33.878.7611.6310.599.7923.3211.5015.649.7214.34

United Parcel Service Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 15.6413.2411.2411.529.7210.2610.2310.3514.3413.87
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