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Legg Mason Inc (NYSE:LM)
EV/EBITDA
9.84 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Legg Mason Inc's enterprise value is $4,742 Mil. Legg Mason Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $482 Mil. Therefore, Legg Mason Inc's EV/EBITDA ratio for today is 9.84.

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, Legg Mason Inc's stock price is $42.75. Legg Mason Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $2.30. Therefore, Legg Mason Inc's P/E Ratio for today is 18.59.

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


Definition

Legg Mason Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4741.918/482.011
=9.84

Legg Mason Inc's current Enterprise Value is $4,742 Mil.
Legg Mason Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 37.816 (Sep. 2014 ) + 143.37 (Dec. 2014 ) + 154.872 (Mar. 2015 ) + 145.953 (Jun. 2015 ) = $482 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.

Legg Mason Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=42.75/2.3
=18.59

Legg Mason Inc's share price for today is $42.75.
Legg Mason Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.04 (Sep. 2014 ) + 0.67 (Dec. 2014 ) + 0.75 (Mar. 2015 ) + 0.84 (Jun. 2015 ) = $2.30.

* 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.

Legg Mason Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ev2ebitda 19.459.9611.26-1.347.319.457.66-11.1410.1612.55

Legg Mason Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda -11.14-14.43-15.2310.2210.1610.1512.0712.7112.5511.88
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