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E*Trade Financial Corp (NAS:ETFC)
EV/EBITDA
8.77 (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 $8,954 Mil. E*Trade Financial Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $1,021 Mil. Therefore, E*Trade Financial Corp's EV/EBITDA ratio for today is 8.77.

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 $27.85. E*Trade Financial Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $1.00. Therefore, E*Trade Financial Corp's P/E Ratio for today is 27.88.

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)
=8953.727/1021
=8.77

E*Trade Financial Corp's current Enterprise Value is $8,954 Mil.
E*Trade Financial Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 260 (Mar. 2014 ) + 222 (Jun. 2014 ) + 210 (Sep. 2014 ) + 329 (Dec. 2014 ) = $1,021 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)
=27.85/0.999
=27.88

E*Trade Financial Corp's share price for today is $27.85.
E*Trade Financial Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.33 (Mar. 2014 ) + 0.24 (Jun. 2014 ) + 0.29 (Sep. 2014 ) + 0.139 (Dec. 2014 ) = $1.00.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 12.7112.77-5.20-5.90-28.3313.237.743.789.057.73

E*Trade Financial Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 5.653.785.869.048.959.059.887.687.817.73
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