Procter & Gamble Co. (PG)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Procter & Gamble Co., EBITDA calculation

USD $ in millions

12 months ended	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007
Net earnings attributable to Procter & Gamble	10,756	11,797	12,736	13,436	12,075	10,340
Net earnings attributable to noncontrolling interests	148	130	110	–	–	–
Interest expense	769	831	946	1,358	1,467	1,304
Income tax expense (benefit)	3,468	3,392	4,101	4,032	4,003	4,370
Earnings before interest and tax (EBIT)	15,141	16,150	17,893	18,826	17,545	16,014
Depreciation and amortization	3,204	2,838	3,108	3,082	3,166	3,130
Earnings before interest, tax, depreciation and amortization (EBITDA)	18,345	18,988	21,001	21,908	20,711	19,144

Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Procter & Gamble Co.'s EBITDA declined from 2010 to 2011 and from 2011 to 2012.

Procter & Gamble Co., current EV/EBITDA

	Procter & Gamble Co.	Consumer Goods
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	244,969
Earnings before interest, tax, depreciation and amortization (EBITDA)	18,345
Ratio
EV/EBITDA	13.35	13.25

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

Procter & Gamble Co., EV/EBITDA calculation

	Jun 30, 2012	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007
Selected Financial Data (USD $ in millions)
Enterprise value (EV)¹	210,898	191,613	198,352	186,660	249,956	233,177
Earnings before interest, tax, depreciation and amortization (EBITDA)²	18,345	18,988	21,001	21,908	20,711	19,144
EV/EBITDA, Comparison to Industry
Procter & Gamble Co.³	11.50	10.09	9.44	8.52	12.07	12.18
Industry, Consumer Goods	11.58	10.24	9.88	10.99	7.99	–

2012 Calculations

³ EV/EBITDA = EV ÷ EBITDA
= 210,898 ÷ 18,345 = 11.50

Ratio	Description	The company
EV/EBITDA	EV/EBITDA is a valuation indicator for the overall company rather than common stock.	Procter & Gamble Co.'s EV/EBITDA ratio increased from 2010 to 2011 and from 2011 to 2012.