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Morgan Stanley (NYSE:MS)
EV/EBITDA
19.12 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Morgan Stanley's enterprise value is $114,570 Mil. Morgan Stanley's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $5,993 Mil. Therefore, Morgan Stanley's EV/EBITDA ratio for today is 19.12.

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 $30.76. Morgan Stanley's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.36. Therefore, Morgan Stanley's P/E Ratio for today is 22.70.

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)
=114569.715/5993
=19.12

Morgan Stanley's current Enterprise Value is $114,570 Mil.
Morgan Stanley's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 1942 (Mar. 2013 ) + 2131 (Jun. 2013 ) + 1707 (Sep. 2013 ) + 213 (Dec. 2013 ) = $5,993 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=30.76/1.358
=22.65

Morgan Stanley's share price for today is $30.76.
Morgan Stanley's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.48 (Mar. 2013 ) + 0.41 (Jun. 2013 ) + 0.45 (Sep. 2013 ) + 0.018 (Dec. 2013 ) = $1.36.

* 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.

Morgan Stanley Annual Data

Nov04Nov05Nov06Nov07Nov08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 20.2157.9360.46130.9250.1396.8427.4425.8473.6024.82

Morgan Stanley Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 18.5925.8426.7423.69251.6073.6047.5735.9220.5524.82
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