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GuruFocus has detected 4 Warning Signs with Invesco Ltd $IVZ.
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Invesco Ltd (NYSE:IVZ)
EV/EBITDA
8.52 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Invesco Ltd's enterprise value is $13,294 Mil. Invesco Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $1,560 Mil. Therefore, Invesco Ltd's EV/EBITDA ratio for today is 8.52.

IVZ' s EV/EBITDA Range Over the Past 10 Years
Min: 4.5   Max: 34.6
Current: 9.66

4.5
34.6

During the past 13 years, the highest EV/EBITDA Ratio of Invesco Ltd was 34.60. The lowest was 4.50. And the median was 12.80.

IVZ's EV/EBITDA is ranked higher than
60% of the 1086 Companies
in the Global Asset Management industry.

( Industry Median: 12.87 vs. IVZ: 9.66 )

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, Invesco Ltd's stock price is $32.54. Invesco Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $1.98. Therefore, Invesco Ltd's P/E Ratio for today is 16.43.

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


Definition

Invesco Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=13293.745/1559.6
=8.52

Invesco Ltd's current Enterprise Value is $13,294 Mil.
Invesco Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 518.6 (Dec. 2015 ) + 278.3 (Mar. 2016 ) + 367.5 (Jun. 2016 ) + 395.2 (Sep. 2016 ) = $1,560 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.

Invesco Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=32.54/1.98
=16.43

Invesco Ltd's share price for today is $32.54.
Invesco Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.48 (Dec. 2015 ) + 0.38 (Mar. 2016 ) + 0.54 (Jun. 2016 ) + 0.58 (Sep. 2016 ) = $1.98.

* 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.

Invesco Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 10.028.5421.2515.9412.2313.3412.5812.8311.049.01

Invesco Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 12.7412.8312.8312.8011.3311.049.818.7510.279.01
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