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American International Group Inc (NYSE:AIG)
EV/EBITDA
5.20 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, American International Group Inc's enterprise value is $95,823 Mil. American International Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $18,443 Mil. Therefore, American International Group Inc's EV/EBITDA ratio for today is 5.20.

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, American International Group Inc's stock price is $56.42. American International Group Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $6.05. Therefore, American International Group Inc's P/E Ratio for today is 9.33.

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


Definition

American International Group Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=95823.054/18443
=5.20

American International Group Inc's current Enterprise Value is $95,823 Mil.
American International Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 3927 (Dec. 2013 ) + 3873 (Mar. 2014 ) + 6165 (Jun. 2014 ) + 4478 (Sep. 2014 ) = $18,443 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.

American International Group Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=56.42/6.046
=9.33

American International Group Inc's share price for today is $56.42.
American International Group Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.336 (Dec. 2013 ) + 1.09 (Mar. 2014 ) + 2.1 (Jun. 2014 ) + 1.52 (Sep. 2014 ) = $6.05.

* 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.

American International Group Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 14.3414.6911.1312.36-1.7111.714.617.574.155.74

American International Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 5.954.194.155.425.867.435.745.955.635.04
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