Switch to:
GuruFocus has detected 5 Warning Signs with Morgan Stanley $MS.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Morgan Stanley (NYSE:MS)
EV/EBITDA
8.81 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Morgan Stanley's enterprise value is $86,431 Mil. Morgan Stanley's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $9,808 Mil. Therefore, Morgan Stanley's EV/EBITDA ratio for today is 8.81.

MS' s EV/EBITDA Range Over the Past 10 Years
Min: -134.7   Max: 1542.5
Current: 8.47

-134.7
1542.5

During the past 13 years, the highest EV/EBITDA Ratio of Morgan Stanley was 1542.50. The lowest was -134.70. And the median was 31.35.

MS's EV/EBITDA is ranked higher than
70% of the 503 Companies
in the Global Capital Markets industry.

( Industry Median: 13.21 vs. MS: 8.47 )

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, Morgan Stanley's stock price is $46.15. Morgan Stanley's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $2.50. Therefore, Morgan Stanley's P/E Ratio for today is 18.46.

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


Definition

Morgan Stanley's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=86430.700/9808
=8.81

Morgan Stanley's current Enterprise Value is $86,431 Mil.
Morgan Stanley's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 1849 (Dec. 2015 ) + 2153 (Mar. 2016 ) + 2947 (Jun. 2016 ) + 2859 (Sep. 2016 ) = $9,808 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Morgan Stanley's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=46.15/2.5
=18.46

Morgan Stanley's share price for today is $46.15.
Morgan Stanley's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.39 (Dec. 2015 ) + 0.55 (Mar. 2016 ) + 0.75 (Jun. 2016 ) + 0.81 (Sep. 2016 ) = $2.50.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Morgan Stanley Annual Data

Nov07Nov08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 130.8650.1394.2826.0326.5169.8822.8342.7318.227.75

Morgan Stanley Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 18.6842.7330.0032.8132.1018.2218.8118.9819.507.75
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK