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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Equity Residential's enterprise value is $30,364 Mil. Equity Residential's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $5,598 Mil. Therefore, Equity Residential's EV/EBITDA ratio for today is 5.42.

EQR' s EV/EBITDA Range Over the Past 10 Years
Min: 5.32   Max: 28.8
Current: 5.42

5.32
28.8

During the past 13 years, the highest EV/EBITDA Ratio of Equity Residential was 28.80. The lowest was 5.32. And the median was 20.10.

EQR's EV/EBITDA is ranked higher than
95% of the 757 Companies
in the Global REIT - Residential industry.

( Industry Median: 15.70 vs. EQR: 5.42 )

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 $60.50. Equity Residential's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $11.46. Therefore, Equity Residential's P/E Ratio for today is 5.28.

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)
=30364.375/5598.395
=5.42

Equity Residential's current Enterprise Value is $30,364 Mil.
Equity Residential's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 505.049 (Dec. 2015 ) + 4118.715 (Mar. 2016 ) + 491.377 (Jun. 2016 ) + 483.254 (Sep. 2016 ) = $5,598 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=60.50/11.46
=5.28

Equity Residential's share price for today is $60.50.
Equity Residential's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.55 (Dec. 2015 ) + 9.76 (Mar. 2016 ) + 0.59 (Jun. 2016 ) + 0.56 (Sep. 2016 ) = $11.46.

* 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.

Equity Residential Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 22.0317.0417.1018.3624.4425.3820.1917.3319.9319.31

Equity Residential Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 18.9218.2019.9319.9516.9017.0019.316.255.945.67
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