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Discover Financial Services (NYSE:DFS)
EV/EBITDA
8.54 (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 $32,950 Mil. Discover Financial Services's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $3,858 Mil. Therefore, Discover Financial Services's EV/EBITDA ratio for today is 8.54.

DFS' s EV/EBITDA Range Over the Past 10 Years
Min: -2.3   Max: 16.2
Current: 8.6

-2.3
16.2

During the past 13 years, the highest EV/EBITDA Ratio of Discover Financial Services was 16.20. The lowest was -2.30. And the median was 8.60.

DFS's EV/EBITDA is ranked higher than
70% of the 349 Companies
in the Global Credit Services industry.

( Industry Median: 15.47 vs. DFS: 8.60 )

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 $44.52. Discover Financial Services's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $4.87. Therefore, Discover Financial Services's P/E Ratio for today is 9.14.

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)
=32949.766/3858
=8.54

Discover Financial Services's current Enterprise Value is $32,950 Mil.
Discover Financial Services's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 743 (Dec. 2014 ) + 1003 (Mar. 2015 ) + 1040 (Jun. 2015 ) + 1072 (Sep. 2015 ) = $3,858 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)
=44.52/4.87
=9.14

Discover Financial Services's share price for today is $44.52.
Discover Financial Services's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 0.88 (Dec. 2014 ) + 1.28 (Mar. 2015 ) + 1.33 (Jun. 2015 ) + 1.38 (Sep. 2015 ) = $4.87.

* 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 0.005.04-1.60-1.0315.407.479.299.5911.160.00

Discover Financial Services Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda 8.729.599.299.9910.0311.169.3310.149.450.00
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