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E*TRADE Financial Corp (NAS:ETFC)
EV/EBITDA
11.44 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, E*TRADE Financial Corp's enterprise value is $6,374 Mil. E*TRADE Financial Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $557 Mil. Therefore, E*TRADE Financial Corp's EV/EBITDA ratio for today is 11.44.

ETFC' s EV/EBITDA Range Over the Past 10 Years
Min: -20.9   Max: 113.5
Current: 11.44

-20.9
113.5

During the past 13 years, the highest EV/EBITDA Ratio of E*TRADE Financial Corp was 113.50. The lowest was -20.90. And the median was 10.70.

ETFC's EV/EBITDA is ranked higher than
56% of the 471 Companies
in the Global Capital Markets industry.

( Industry Median: 13.00 vs. ETFC: 11.44 )

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, E*TRADE Financial Corp's stock price is $25.18. E*TRADE Financial Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2015 was $0.90. Therefore, E*TRADE Financial Corp's P/E Ratio for today is 27.92.

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


Definition

E*TRADE Financial Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6373.604/557
=11.44

E*TRADE Financial Corp's current Enterprise Value is $6,374 Mil.
E*TRADE Financial Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was 240 (Mar. 2015 ) + 230 (Jun. 2015 ) + -124 (Sep. 2015 ) + 211 (Dec. 2015 ) = $557 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.

E*TRADE Financial Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=25.18/0.902
=27.92

E*TRADE Financial Corp's share price for today is $25.18.
E*TRADE Financial Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2015 was 0.14 (Mar. 2015 ) + 0.99 (Jun. 2015 ) + -0.53 (Sep. 2015 ) + 0.302 (Dec. 2015 ) = $0.90.

* 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.

E*TRADE Financial Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 12.76-5.27-5.90-28.3313.235.904.9810.6612.7414.17

E*TRADE Financial Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 10.6611.478.728.8212.7410.7910.2213.5814.170.00
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