Switch to:
Discover Financial Services (NYSE:DFS)
EV/EBITDA
8.76 (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 $34,601 Mil. Discover Financial Services's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2016 was $3,948 Mil. Therefore, Discover Financial Services's EV/EBITDA ratio for today is 8.76.

DFS' s EV/EBITDA Range Over the Past 10 Years
Min: -2.4   Max: 16.3
Current: 8.76

-2.4
16.3

During the past 13 years, the highest EV/EBITDA Ratio of Discover Financial Services was 16.30. The lowest was -2.40. And the median was 8.60.

DFS's EV/EBITDA is ranked higher than
70% of the 267 Companies
in the Global Credit Services industry.

( Industry Median: 16.04 vs. DFS: 8.76 )

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 $58.46. Discover Financial Services's earnings per share for the trailing twelve months (TTM) ended in Jun. 2016 was $5.35. Therefore, Discover Financial Services's P/E Ratio for today is 10.93.

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)
=34601.050/3948
=8.76

Discover Financial Services's current Enterprise Value is $34,601 Mil.
Discover Financial Services's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2016 was 1072 (Sep. 2015 ) + 888 (Dec. 2015 ) + 998 (Mar. 2016 ) + 990 (Jun. 2016 ) = $3,948 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)
=58.46/5.35
=10.93

Discover Financial Services's share price for today is $58.46.
Discover Financial Services's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2016 was 1.38 (Sep. 2015 ) + 1.15 (Dec. 2015 ) + 1.35 (Mar. 2016 ) + 1.47 (Jun. 2016 ) = $5.35.

* 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

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15
ev2ebitda 0.005.04-1.60-1.0315.407.489.299.5911.169.57

Discover Financial Services Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
ev2ebitda 9.299.9910.0311.169.3310.149.459.578.578.31
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK