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Legg Mason Inc (NYSE:LM)
EV/EBITDA
5.54 (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 $3,110 Mil. Legg Mason Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2015 was $562 Mil. Therefore, Legg Mason Inc's EV/EBITDA ratio for today is 5.54.

LM' s EV/EBITDA Range Over the Past 10 Years
Min: -91.4   Max: 25.3
Current: 5.54

-91.4
25.3

During the past 13 years, the highest EV/EBITDA Ratio of Legg Mason Inc was 25.30. The lowest was -91.40. And the median was 9.30.

LM's EV/EBITDA is ranked higher than
77% of the 966 Companies
in the Global Asset Management industry.

( Industry Median: 11.95 vs. LM: 5.54 )

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 $26.49. Legg Mason Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2015 was $2.84. Therefore, Legg Mason Inc's P/E Ratio for today is 9.33.

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)
=3110.275/561.6
=5.54

Legg Mason Inc's current Enterprise Value is $3,110 Mil.
Legg Mason Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2015 was 143.37 (Dec. 2014 ) + 154.872 (Mar. 2015 ) + 145.953 (Jun. 2015 ) + 117.405 (Sep. 2015 ) = $562 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)
=26.49/2.84
=9.33

Legg Mason Inc's share price for today is $26.49.
Legg Mason Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2015 was 0.67 (Dec. 2014 ) + 0.75 (Mar. 2015 ) + 0.84 (Jun. 2015 ) + 0.58 (Sep. 2015 ) = $2.84.

* 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 19.459.9611.26-1.347.369.457.66-11.1410.1612.55

Legg Mason Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda -15.2310.2210.1610.1512.0712.7112.5511.887.920.00
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