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Equity Residential (NYSE:EQR)
EV/EBITDA
22.45 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Equity Residential's enterprise value is $34,463 Mil. Equity Residential's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $1,570 Mil. Therefore, Equity Residential's EV/EBITDA ratio for today is 22.45.

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, Equity Residential's stock price is $64.13. Equity Residential's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $2.48. Therefore, Equity Residential's P/E Ratio for today is 26.00.

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


Definition

Equity Residential's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=34463.319/1569.922
=21.95

Equity Residential's current Enterprise Value is $34,463 Mil.
Equity Residential's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 395.931 (Jun. 2013 ) + 393.316 (Sep. 2013 ) + 399.1 (Dec. 2013 ) + 381.575 (Mar. 2014 ) = $1,570 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.

Equity Residential's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=64.13/2.475
=25.91

Equity Residential's share price for today is $64.13.
Equity Residential's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.9 (Jun. 2013 ) + 1.05 (Sep. 2013 ) + 0.305 (Dec. 2013 ) + 0.22 (Mar. 2014 ) = $2.48.

* 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.

Equity Residential Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 17.2918.7921.9617.0816.4117.3023.8122.4920.1920.07

Equity Residential Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 22.4920.5424.1521.6020.1919.4118.4220.8120.0720.53
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