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Legg Mason Inc (NYSE:LM)
EV/EBITDA
9.47 (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 $5,125 Mil. Legg Mason Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $535 Mil. Therefore, Legg Mason Inc's EV/EBITDA ratio for today is 9.47.

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 $47.25. Legg Mason Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $2.33. Therefore, Legg Mason Inc's P/E Ratio for today is 20.40.

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)
=5125.064/535.397
=9.57

Legg Mason Inc's current Enterprise Value is $5,125 Mil.
Legg Mason Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 103.427 (Jun. 2013 ) + 135.509 (Sep. 2013 ) + 155.617 (Dec. 2013 ) + 140.844 (Mar. 2014 ) = $535 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)
=47.25/2.325
=20.32

Legg Mason Inc's share price for today is $47.25.
Legg Mason Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.38 (Jun. 2013 ) + 0.7 (Sep. 2013 ) + 0.67 (Dec. 2013 ) + 0.575 (Mar. 2014 ) = $2.33.

* 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 15.1918.589.9610.800.007.369.457.660.0010.00

Legg Mason Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 6.807.6610.408.500.000.000.000.0010.3610.00
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