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American Express Co (NYSE:AXP)
EV/EBITDA
11.86 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, American Express Co's enterprise value is $118,632 Mil. American Express Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $10,003 Mil. Therefore, American Express Co's EV/EBITDA ratio for today is 11.86.

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 Express Co's stock price is $77.99. American Express Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $5.56. Therefore, American Express Co's P/E Ratio for today is 14.02.

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


Definition

American Express Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=118632.263/10003
=11.86

American Express Co's current Enterprise Value is $118,632 Mil.
American Express Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 2457 (Mar. 2014 ) + 2578 (Jun. 2014 ) + 2495 (Sep. 2014 ) + 2473 (Dec. 2014 ) = $10,003 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 Express Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=77.99/5.561
=14.02

American Express Co's share price for today is $77.99.
American Express Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.33 (Mar. 2014 ) + 1.43 (Jun. 2014 ) + 1.4 (Sep. 2014 ) + 1.401 (Dec. 2014 ) = $5.56.

* 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 Express Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 22.3321.3719.5120.70-87.9816.1011.9313.9115.4213.54

American Express Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 13.9113.9814.8014.5915.4214.7014.9613.1513.540.00
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