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Northern Trust Corporation (NAS:NTRS)
EV/EBITDA
14.23 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Northern Trust Corporation's enterprise value is $18,726 Mil. Northern Trust Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,316 Mil. Therefore, Northern Trust Corporation's EV/EBITDA ratio for today is 14.23.

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 Corporation's stock price is $59.39. Northern Trust Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.05. Therefore, Northern Trust Corporation's P/E Ratio for today is 19.50.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=18726.026/1316.4
=14.23

Northern Trust Corporation's current Enterprise Value is $18,726 Mil.
Northern Trust Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 318.8 (Mar. 2013 ) + 365.8 (Jun. 2013 ) + 382.7 (Sep. 2013 ) + 249.1 (Dec. 2013 ) = $1,316 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 Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=59.39/3.045
=19.50

Northern Trust Corporation's share price for today is $59.39.
Northern Trust Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.67 (Mar. 2013 ) + 0.78 (Jun. 2013 ) + 0.84 (Sep. 2013 ) + 0.755 (Dec. 2013 ) = $3.05.

* 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 16.1816.2113.4116.84-6.87-7.31-8.41-16.92-12.30-12.05

Northern Trust Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda -13.43-16.92-7.43-11.91-10.69-12.30-7.92-7.60-7.89-12.05
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