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Aetna Inc (NYSE:AET)
EV/EBITDA
7.89 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Aetna Inc's enterprise value is $43,434 Mil. Aetna Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $5,504 Mil. Therefore, Aetna Inc's EV/EBITDA ratio for today is 7.89.

AET' s EV/EBITDA Range Over the Past 10 Years
Min: 2.4   Max: 10
Current: 7.88

2.4
10

During the past 13 years, the highest EV/EBITDA Ratio of Aetna Inc was 10.00. The lowest was 2.40. And the median was 5.65.

AET's EV/EBITDA is ranked higher than
59% of the 22 Companies
in the Global Health Care Plans industry.

( Industry Median: 8.52 vs. AET: 7.88 )

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, Aetna Inc's stock price is $128.91. Aetna Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $6.90. Therefore, Aetna Inc's P/E Ratio for today is 18.68.

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


Definition

Aetna Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=43434.374/5504.2
=7.89

Aetna Inc's current Enterprise Value is $43,434 Mil.
Aetna Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 863 (Dec. 2015 ) + 1559.6 (Mar. 2016 ) + 1651 (Jun. 2016 ) + 1430.6 (Sep. 2016 ) = $5,504 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Aetna Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=128.91/6.9
=18.68

Aetna Inc's share price for today is $128.91.
Aetna Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.91 (Dec. 2015 ) + 2.06 (Mar. 2016 ) + 2.23 (Jun. 2016 ) + 1.7 (Sep. 2016 ) = $6.90.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Aetna Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 7.558.995.355.333.614.315.177.728.017.62

Aetna Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 7.527.078.018.799.698.157.627.738.117.12
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