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Discover Financial Services (NYSE:DFS)
EV/EBITDA
10.17 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Discover Financial Services's enterprise value is $41,332 Mil. Discover Financial Services's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $4,063 Mil. Therefore, Discover Financial Services's EV/EBITDA ratio for today is 10.17.

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, Discover Financial Services's stock price is $56.79. Discover Financial Services's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $4.90. Therefore, Discover Financial Services's P/E Ratio for today is 11.59.

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


Definition

Discover Financial Services's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=41331.800/4063
=10.17

Discover Financial Services's current Enterprise Value is $41,332 Mil.
Discover Financial Services's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 1112 (Mar. 2014 ) + 1106 (Jun. 2014 ) + 1102 (Sep. 2014 ) + 743 (Dec. 2014 ) = $4,063 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.

Discover Financial Services's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=56.79/4.899
=11.59

Discover Financial Services's share price for today is $56.79.
Discover Financial Services's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.31 (Mar. 2014 ) + 1.35 (Jun. 2014 ) + 1.37 (Sep. 2014 ) + 0.869 (Dec. 2014 ) = $4.90.

* 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.

Discover Financial Services Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14
ev2ebitda 0.000.005.04-1.60-1.0115.407.489.299.5911.23

Discover Financial Services Quarterly Data

Nov12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 9.297.338.328.719.269.599.299.9910.0311.23
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