The EV/EBITDA of Irish Continental Group plc is 12.28
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.
Irish Continental Group plc operates as a shipping, transport, and leisure company. It operates in two segments, Ferries, and Container and Terminal. The Ferries segment engages in the provision of passenger and roll on roll off freight shipping, and container lift on lift off freight services on routes between Ireland, the United Kingdom, and Continental Europe. The Container and Terminal segment provides door-to-door and feeder lift on lift off freight services, stevedoring, and other related terminal services in the ports of Dublin and Belfast. The company also provides ship chartering, shipping and forwarding agency, ship leasing, and administration services. Irish Continental Group plc was founded in 1972 and is based in Dublin, Ireland.