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GuruFocus has detected 6 Warning Signs with Capital One Financial Corp $COF.
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Capital One Financial Corp (NYSE:COF)
EV-to-EBITDA
11.56 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Capital One Financial Corp's enterprise value is $91,495 Mil. Capital One Financial Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $7,912 Mil. Therefore, Capital One Financial Corp's EV/EBITDA ratio for today is 11.56.

COF' s EV-to-EBITDA Range Over the Past 10 Years
Min: -197.5   Max: 239.1
Current: 11.88

-197.5
239.1

During the past 13 years, the highest EV/EBITDA Ratio of Capital One Financial Corp was 239.10. The lowest was -197.50. And the median was 10.60.

COF's EV-to-EBITDA is ranked higher than
59% of the 315 Companies
in the Global Credit Services industry.

( Industry Median: 16.52 vs. COF: 11.88 )

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, Capital One Financial Corp's stock price is $92.61. Capital One Financial Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $6.90. Therefore, Capital One Financial Corp's P/E Ratio for today is 13.42.

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


Definition

Capital One Financial Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=91495.290/7912
=11.56

Capital One Financial Corp's current Enterprise Value is $91,495 Mil.
Capital One Financial Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 2061 (Mar. 2016 ) + 1983 (Jun. 2016 ) + 2124 (Sep. 2016 ) + 1744 (Dec. 2016 ) = $7,912 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.

Capital One Financial Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=92.61/6.9
=13.42

Capital One Financial Corp's share price for today is $92.61.
Capital One Financial Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.84 (Mar. 2016 ) + 1.69 (Jun. 2016 ) + 1.9 (Sep. 2016 ) + 1.47 (Dec. 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.

Capital One Financial Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 11.3625.0714.4511.3210.0810.128.9910.0411.0511.55

Capital One Financial Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 9.4210.048.7710.599.2411.0510.1410.2610.5411.55
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