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E*Trade Financial Corp (NAS:ETFC)
EV/EBITDA
9.19 (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 $8,206 Mil. E*Trade Financial Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $905 Mil. Therefore, E*Trade Financial Corp's EV/EBITDA ratio for today is 9.19.

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 $24.06. E*Trade Financial Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $0.93. Therefore, E*Trade Financial Corp'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

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8205.803/905.399
=9.06

E*Trade Financial Corp's current Enterprise Value is $8,206 Mil.
E*Trade Financial Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 204.943 (Sep. 2013 ) + 218.456 (Dec. 2013 ) + 260 (Mar. 2014 ) + 222 (Jun. 2014 ) = $905 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)
=24.06/0.927
=25.95

E*Trade Financial Corp's share price for today is $24.06.
E*Trade Financial Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.16 (Sep. 2013 ) + 0.197 (Dec. 2013 ) + 0.33 (Mar. 2014 ) + 0.24 (Jun. 2014 ) = $0.93.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 7.2612.7112.775.871.5114.7413.237.743.789.78

E*Trade Financial Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 9.449.165.653.785.869.048.589.7810.618.14
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