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Principal Financial Group (NYSE:PFG)
EBITDA Per Share
$5.06 (TTM As of Mar. 2014)

Principal Financial Group's EBITDA per share for the three months ended in Mar. 2014 was $1.39. Its EBITDA per share for the trailing twelve months (TTM) ended in Mar. 2014 was $5.06.

During the past 12 months, the average EBITDA per Share Growth Rate of Principal Financial Group was 38.30% per year. During the past 3 years, the average EBITDA per Share Growth Rate was 13.40% per year. During the past 5 years, the average EBITDA per Share Growth Rate was 10.00% per year. During the past 10 years, the average EBITDA per Share Growth Rate was -2.90% per year.

PFG' s 10-Year EBITDA Growth(%) Range
Min: 0   Max: 91.8
Current: 13.4

0
91.8

During the past 13 years, the highest 3-Year average EBITDA per Share Growth Rate of Principal Financial Group was 91.80% per year. The lowest was 0.00% per year. And the median was 7.10% per year.

PFG's EBITDA Growth(%)is ranked higher than
90% of the 133 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.60 vs. PFG: 13.40 )

Principal Financial Group's EBITDA for the three months ended in Mar. 2014 was $417 Mil.

During the past 12 months, the average EBITDA Growth Rate of Principal Financial Group was 39.40% per year. During the past 3 years, the average EBITDA Growth Rate was 10.40% per year. During the past 5 years, the average EBITDA Growth Rate was 9.20% per year. During the past 10 years, the average EBITDA Growth Rate was -2.20% per year.

During the past 13 years, the highest 3-Year average EBITDA Growth Rate of Principal Financial Group was 80.80% per year. The lowest was 0.00% per year. And the median was 7.30% per year.


Definition

EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company’s stock.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.

Principal Financial Group's EBITDA per share for the fiscal year that ended in Dec. 2013 is calculated as

EBITDA Per Share(A: Dec. 2013 )
=(EBIT+Depreciation, Depletion and Amortization)/Total Shares Outstanding (Diluted)
=(1124+153.9)/298.200
=1277.9/298.200
=4.29

Principal Financial Group's EBITDA per share for the quarter that ended in Mar. 2014 is calculated as

EBITDA Per Share(Q: Mar. 2014 )
=(Revenue-Cost of Goods Sold-Selling, General, & Admin. Expense
=(2478.6-0-0
-Research & Development-Others)/Total Shares Outstanding (Diluted)
-0-2061.7)/299.500
=416.9/299.500
=1.39

EBITDA Per Share(Q: Mar. 2014 )
=(EBIT+Depreciation, Depletion and Amortization)/Total Shares Outstanding (Diluted)
=(376.4+40.5)/299.500
=416.9/299.500
=1.39

Principal Financial Group EBITDA per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.21 (Sep. 2013 ) + 1.3 (Nov. 2013 ) + 1.16 (Dec. 2013 ) + 1.39 (Mar. 2014 ) = $5.06

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

EBITDA is a cash flow measure that ignores changes in working capital. EBITDA minus Depreciation, and Amortization (DA) equals Operating Income. Operating Income is profit before interest and taxes. Of course, Interest and taxes need to be paid.

While depreciation and amortization expenses do not need to be paid in cash, assets - especially tangible assets - do need to be replaced over time. EBITDA is not a measure of profit in any sense. EBITDA is a measure of cash generation by a business where the uses of that cash may be more or less discretionary depending on the nature of the business.

The EBITDA of a TV station is largely discretionary. Owners may use much of the EBITDA generated by a TV station as they see fit. The EBITDA of a railroad is largely non-discretionary. Owners must use much of the EBITDA generated by a railroad to replace the physical assets of the railroad or the business will literally fall apart over time.

EBITDA can be thought of as the cash a business generates that is available to:

• Add more inventory
• Add more receivables
• Replace property, plant, and equipment
• Add more property, plant, and equipment
• Pay interest
• Pay taxes
• And finally: pay owners

EBITDA is widely used in financial analysis because Depreciation and Amortization are not present day cash expenses.. Depreciation and amortization are the spreading out of the costs of assets over the time in which those assets provide benefits. Today’s depreciation and amortization expenses relate to assets bought in the past. The assets being expensed may or may not need to be replaced in the future. And the cost to replace the assets may be more or less than it was in the past. For this reason, the depreciation and amortization expenses a company records in the present year may have no relationship to the actual cash costs needed to maintain its assets in future years.

A company’s depreciation expense depends on both its expectations about the assets it owns and its choice of accounting methods. Two companies owning identical assets may have different depreciation expenses because they have different expectations about the useful lives of those assets and because they make different accounting choices.

Analysts use EBITDA to remove this element of personal choice from a company’s accounting statements. The use of EBITDA is an attempt to make the results of different companies more comparable and uniform.


Be Aware

Although depreciation is not a cash cost it is a real business cost because the company has to pay for the fixed assets when they purchase them. Both Warren Buffett and Charlie Munger hate the idea of EDITDA because in this calculation, depreciation is not counted as an expense.

EBITDA over Revenue is a good metric for comparing the operating efficiencies between companies because EBITDA is less vulnerable to companies’ accounting choices. For this reason, EBITDA is used in ranking the Predictability of Companies. Also price/EBITDA is sometimes used in valuations.


Related Terms

Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Gross Profit, Depreciation, Depletion and Amortization, Operating Income, Total Shares Outstanding (Diluted)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Principal Financial Group Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
EBITDA_per_share 3.825.085.204.492.322.962.943.183.644.29

Principal Financial Group Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Nov13Dec13Mar14
EBITDA_per_share 1.020.870.760.980.891.031.211.301.161.39
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