Volkswagen AG EV/EBITDA
What is the EV/EBITDA of Volkswagen AG?
The EV/EBITDA of Volkswagen AG is 7.10
What is the definition of EV/EBITDA?
EV/EBITDA is enterprise value divided by earnings before interest, tax, depreciation, and amortization. It is a measure of how expensive a stock is and is more frequently valid for comparisons across companies than the price to earnings ratio. It measures the price (in the form of enterprise value) an investor pays for the benefit of the company’s cash flow (in the form of EBITDA).
= enterprise value / EBITDA
Price to earnings ratios are impacted by a company's choice of capital structure - companies which raise money via debt will have lower P/Es (and therefore look cheaper) than companies that raise an equivalent amount of money by issuing shares, even though the two companies might have equivalent enterprise values. A sample case is when a company with debt were to raise money by issuing shares of stock, and then used the money to pay off the debt, this company's P/E ratio would shoot up because of the increased number of shares - although nothing about the fundamental value of the business has changed. EV / EBITDA is unaffected by capital structure as enterprise value includes the value of debt, and EBITDA is available to all investors (debt and equity) as it excludes interest payments on that debt. It is ideal for analysts and potential investors looking to compare companies within the same industry.
EV/EBITDA of companies in the Consumer Discretionary sector on XETRA compared to Volkswagen AG
What does Volkswagen AG do?
Volkswagen AG manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates in four segments: Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles and engines, and light commercial vehicles; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells trucks and buses; and offers parts and related services. The Power Engineering segment offers large-bore diesel engines, turbomachinery, special gear units, and propulsion components. The Financial Services segment provides dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles. It provides its products under the Volkswagen Passenger Cars, Audi, ÂKODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Scania, MAN, Lamborghini, Ducati, and Bugatti brands. Volkswagen AG was incorporated in 1937 and is based in Wolfsburg, Germany.
Companies with ev/ebitda similar to Volkswagen AG
- Sree Rayalaseema Hi-Strength Hypo has EV/EBITDA of 7.09
- Nexans SA has EV/EBITDA of 7.10
- Nexans Société Anonyme has EV/EBITDA of 7.10
- SSY has EV/EBITDA of 7.10
- Siyaram Silk Mills has EV/EBITDA of 7.10
- Tile Shop has EV/EBITDA of 7.10
- Volkswagen AG has EV/EBITDA of 7.10
- Topps Tiles Plc has EV/EBITDA of 7.10
- PlanetMedia SA has EV/EBITDA of 7.11
- Titan Biotech has EV/EBITDA of 7.11
- China Agri-Products Exchange has EV/EBITDA of 7.11
- Grosvenor Resource has EV/EBITDA of 7.12
- Ameris Bancorp has EV/EBITDA of 7.12