| How Does Monsanto’s Valuation Multiple Compare to Peers? | |
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What to Expect from Monsanto's 4Q15 Earnings Release (Continued from Prior Part) Valuation multiple
With the 4Q15 earnings release around the corner, it would be helpful to look at Monsanto’s current valuation multiple and how it has trended over the years. We will use the EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) valuation multiple, as the metric takes into account the effect of the company’s debt and cash. The EV/EBITDA multiple is neutral to capital structure. This is important because the fertilizer business is capital intensive, so high levels of debt are common. This multiple also eliminates the variation that can occur due to the different methods that companies use to account for depreciation.
EV/EBITDA
- Currently, Monsanto (MON) is trading at an EV/EBITDA multiple of 9.78, which is at the low point of its historical trend.
- The company traded at a high point of 14x in May 2014 and reached its lowest point at 9x in September 2015.
- DuPont (DD) is trading at 9.5x, which is close to the midpoint of its historical high and low range.
- DuPont’s valuation multiple hit a low point of 8x in January 2014 and climbed to a high of 11.2x in November 2015.
- Dow Chemicals traded at a high point of 9x in October 2014 and reached its low point of 6.8x in August 2015. Dow Chemicals (DOW) is currently trading at its low point of 7.5x.
Market Realist will examine how Monsanto’s valuation multiple changes after it releases its 4Q15 earnings. We’ll also have the latest updates on other companies like Potash Corporation (POT) and Mosaic (MOS). Currently , these companies form 15.4% of the Market Vectors Agribusiness ETF (MOO).
Browse this series on Market Realist:
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du Pont de Nemours and Co
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CODE : DUPP.PA |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
du Pont de Nemours is based in United states of america. du Pont de Nemours is listed in France. Its market capitalisation is €UR 49.7 billions as of today (US$ 55.5 billions, € 49.6 billions). Its stock quote reached its lowest recent point on March 06, 2009 at €UR 10.03, and its highest recent level on March 20, 2015 at €UR 72.47. du Pont de Nemours has 876 409 984 shares outstanding. |