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Legg Mason Inc (NYSE:LM)
EV/EBITDA
10.02 (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 $5,788 Mil. Legg Mason Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $577 Mil. Therefore, Legg Mason Inc's EV/EBITDA ratio for today is 10.02.

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 $50.83. Legg Mason Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.56. Therefore, Legg Mason Inc's P/E Ratio for today is 19.90.

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)
=5788.419/577.265
=10.03

Legg Mason Inc's current Enterprise Value is $5,788 Mil.
Legg Mason Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 135.509 (Sep. 2013 ) + 155.617 (Dec. 2013 ) + 140.844 (Mar. 2014 ) + 145.295 (Jun. 2014 ) = $577 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)
=50.83/2.555
=19.89

Legg Mason Inc's share price for today is $50.83.
Legg Mason Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.7 (Sep. 2013 ) + 0.67 (Dec. 2013 ) + 0.575 (Mar. 2014 ) + 0.61 (Jun. 2014 ) = $2.56.

* 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebitda 15.1918.589.9610.80-1.347.369.457.66-11.1410.00

Legg Mason Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 7.6610.408.50-10.88-11.14-14.43-15.5110.3610.0010.21
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