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E*Trade Financial Corp (NAS:ETFC)
EV/EBITDA
8.28 (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 $8,245 Mil. E*Trade Financial Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $996 Mil. Therefore, E*Trade Financial Corp's EV/EBITDA ratio for today is 8.28.

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 $24.17. E*Trade Financial Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.06. Therefore, E*Trade Financial Corp's P/E Ratio for today is 22.84.

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)
=8245.026/995.934
=8.28

E*Trade Financial Corp's current Enterprise Value is $8,245 Mil.
E*Trade Financial Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 303.934 (Dec. 2013 ) + 260 (Mar. 2014 ) + 222 (Jun. 2014 ) + 210 (Sep. 2014 ) = $996 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)
=24.17/1.058
=22.84

E*Trade Financial Corp's share price for today is $24.17.
E*Trade Financial Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.198 (Dec. 2013 ) + 0.33 (Mar. 2014 ) + 0.24 (Jun. 2014 ) + 0.29 (Sep. 2014 ) = $1.06.

* 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 7.2612.7112.77-5.20-5.90-28.3313.237.743.789.05

E*Trade Financial Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 9.165.653.785.869.048.959.059.887.677.83
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