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GuruFocus has detected 4 Warning Signs with Wal-Mart Stores Inc $WMT.
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Wal-Mart Stores Inc (NYSE:WMT)
EV-to-EBITDA
8.19 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Wal-Mart Stores Inc's enterprise value is $270,904 Mil. Wal-Mart Stores Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2017 was $33,080 Mil. Therefore, Wal-Mart Stores Inc's EV/EBITDA ratio for today is 8.19.

WMT' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.6   Max: 9.8
Current: 8.19

6.6
9.8

During the past 13 years, the highest EV/EBITDA Ratio of Wal-Mart Stores Inc was 9.80. The lowest was 6.60. And the median was 8.10.

WMT's EV-to-EBITDA is ranked higher than
75% of the 329 Companies
in the Global Discount Stores industry.

( Industry Median: 11.83 vs. WMT: 8.19 )

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, Wal-Mart Stores Inc's stock price is $75.81. Wal-Mart Stores Inc's earnings per share for the trailing twelve months (TTM) ended in Apr. 2017 was $4.41. Therefore, Wal-Mart Stores Inc's P/E Ratio for today is 17.19.

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


Definition

Wal-Mart Stores Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=270904.180/33080
=8.19

Wal-Mart Stores Inc's current Enterprise Value is $270,904 Mil.
Wal-Mart Stores Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2017 was 8704 (Jul. 2016 ) + 7612 (Oct. 2016 ) + 8941 (Jan. 2017 ) + 7823 (Apr. 2017 ) = $33,080 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.

Wal-Mart Stores Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=75.81/4.41
=17.19

Wal-Mart Stores Inc's share price for today is $75.81.
Wal-Mart Stores Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Apr. 2017 was 1.21 (Jul. 2016 ) + 0.98 (Oct. 2016 ) + 1.22 (Jan. 2017 ) + 1 (Apr. 2017 ) = $4.41.

* 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.

Wal-Mart Stores Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebitda 8.497.427.587.267.517.798.258.787.567.44

Wal-Mart Stores Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev2ebitda 8.788.277.866.677.567.627.997.937.448.17
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