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Discover Financial Services (NYSE:DFS)
EV-to-EBITDA
10.00 (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 $40,064 Mil. Discover Financial Services's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $4,007 Mil. Therefore, Discover Financial Services's EV/EBITDA ratio for today is 10.00.

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

-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 9.00.

DFS's EV-to-EBITDA is ranked higher than
80% of the 429 Companies
in the Global Credit Services industry.

( Industry Median: 14.96 vs. DFS: 10.00 )

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 $67.66. Discover Financial Services's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $5.78. Therefore, Discover Financial Services's P/E Ratio for today is 11.71.

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)
=40063.703/4007
=10.00

Discover Financial Services's current Enterprise Value is $40,064 Mil.
Discover Financial Services's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 998 (Mar. 2016 ) + 990 (Jun. 2016 ) + 1047 (Sep. 2016 ) + 972 (Dec. 2016 ) = $4,007 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=67.66/5.78
=11.71

Discover Financial Services's share price for today is $67.66.
Discover Financial Services's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.35 (Mar. 2016 ) + 1.47 (Jun. 2016 ) + 1.56 (Sep. 2016 ) + 1.4 (Dec. 2016 ) = $5.78.

* 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.

Discover Financial Services Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15Dec16
ev2ebitda 5.04-1.60-1.0315.407.489.299.5911.169.5510.47

Discover Financial Services Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 10.0311.169.3510.149.459.558.578.969.4010.47
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