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Arch Capital Group Ltd (NAS:ACGL)
EV/EBITDA
8.97 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Arch Capital Group Ltd's enterprise value is $6,301 Mil. Arch Capital Group Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $700 Mil. Therefore, Arch Capital Group Ltd's EV/EBITDA ratio for today is 8.97.

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Arch Capital Group Ltd's stock price is $54.72. Arch Capital Group Ltd's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $4.51. Therefore, Arch Capital Group Ltd's P/E Ratio for today is 12.10.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Arch Capital Group Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6301.421/699.625
=9.01

Arch Capital Group Ltd's current Enterprise Value is $6,301 Mil.
Arch Capital Group Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 187.863 (Jun. 2013 ) + 128.158 (Sep. 2013 ) + 186.317 (Dec. 2013 ) + 197.287 (Mar. 2014 ) = $700 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Arch Capital Group Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=54.72/4.507
=12.14

Arch Capital Group Ltd's share price for today is $54.72.
Arch Capital Group Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.26 (Jun. 2013 ) + 0.8 (Sep. 2013 ) + 1.147 (Dec. 2013 ) + 1.3 (Mar. 2014 ) = $4.51.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

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

Arch Capital Group Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 4.256.576.553.0311.863.944.3210.448.949.46

Arch Capital Group Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 10.447.636.937.208.949.029.1210.939.469.52
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