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KKR Financial Holdings LLC (NYSE:KFN)
EV/EBITDA
27.35 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, KKR Financial Holdings LLC's enterprise value is $8,227.0 Mil. KKR Financial Holdings LLC's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $300.8 Mil. Therefore, KKR Financial Holdings LLC's EV/EBITDA ratio for today is 27.35.

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, KKR Financial Holdings LLC's stock price is $11.54. KKR Financial Holdings LLC's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.31. Therefore, KKR Financial Holdings LLC's P/E Ratio for today is 8.80.

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


Definition

KKR Financial Holdings LLC's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8226.969/300.82
=27.35

KKR Financial Holdings LLC's current Enterprise Value is $8,227.0 Mil.
KKR Financial Holdings LLC's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 104.026 (Mar. 2013 ) + 92.71 (Jun. 2013 ) + 30.823 (Sep. 2013 ) + 73.261 (Dec. 2013 ) = $300.8 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.

KKR Financial Holdings LLC's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=11.54/1.314
=8.78

KKR Financial Holdings LLC's share price for today is $11.54.
KKR Financial Holdings LLC's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.46 (Mar. 2013 ) + 0.39 (Jun. 2013 ) + 0.16 (Sep. 2013 ) + 0.304 (Dec. 2013 ) = $1.31.

* 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.

KKR Financial Holdings LLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.0080.0895.1737.46-8.8472.3516.7617.3024.2227.79

KKR Financial Holdings LLC Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 17.3018.1321.7419.0224.2222.4822.9431.3027.790.00
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