Switch to:
Northern Trust Corp (NAS:NTRS)
EV/EBITDA
4.69 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Northern Trust Corp's enterprise value is $6,306 Mil. Northern Trust Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $1,344 Mil. Therefore, Northern Trust Corp's EV/EBITDA ratio for today is 4.69.

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, Northern Trust Corp's stock price is $66.36. Northern Trust Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $3.10. Therefore, Northern Trust Corp's P/E Ratio for today is 21.44.

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


Definition

Northern Trust Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6305.700/1344.1
=4.69

Northern Trust Corp's current Enterprise Value is $6,306 Mil.
Northern Trust Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 249.1 (Dec. 2013 ) + 353 (Mar. 2014 ) + 356.6 (Jun. 2014 ) + 385.4 (Sep. 2014 ) = $1,344 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.

Northern Trust Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=66.36/3.095
=21.44

Northern Trust Corp's share price for today is $66.36.
Northern Trust Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.755 (Dec. 2013 ) + 0.75 (Mar. 2014 ) + 0.75 (Jun. 2014 ) + 0.84 (Sep. 2014 ) = $3.10.

* 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.

Northern Trust Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Sep13
ev2ebitda 14.9615.5013.2716.46-6.87-7.31-8.41-16.92-12.30-7.89

Northern Trust Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda -9.21-9.55-12.30-7.92-3.68-7.89-12.13-7.76-10.105.02
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)
Free 7-day Trial
FEEDBACK