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American International Group Inc (NYSE:AIG)
EV/EBITDA
5.09 (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 $93,289 Mil. American International Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $18,335 Mil. Therefore, American International Group Inc's EV/EBITDA ratio for today is 5.09.

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 $54.61. 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 9.00.

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)
=93289.200/18335
=5.09

American International Group Inc's current Enterprise Value is $93,289 Mil.
American International Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 3819 (Dec. 2013 ) + 3873 (Mar. 2014 ) + 6165 (Jun. 2014 ) + 4478 (Sep. 2014 ) = $18,335 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)
=54.61/6.046
=9.03

American International Group Inc's share price for today is $54.61.
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 14.3414.6911.1314.66-2.5616.604.5111.785.685.74

American International Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 8.835.575.687.177.058.555.745.985.675.07
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