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Northern Trust Corp (NAS:NTRS)
EV/EBITDA
4.31 (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 $5,126 Mil. Northern Trust Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $1,190 Mil. Therefore, Northern Trust Corp's EV/EBITDA ratio for today is 4.31.

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 $67.17. Northern Trust Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $3.32. Therefore, Northern Trust Corp's P/E Ratio for today is 20.23.

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)
=5125.700/1190.2
=4.31

Northern Trust Corp's current Enterprise Value is $5,126 Mil.
Northern Trust Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 269.5 (Mar. 2014 ) + 270.7 (Jun. 2014 ) + 304.2 (Sep. 2014 ) + 345.8 (Dec. 2014 ) = $1,190 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)
=67.17/3.32
=20.23

Northern Trust Corp's share price for today is $67.17.
Northern Trust Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.75 (Mar. 2014 ) + 0.75 (Jun. 2014 ) + 0.84 (Sep. 2014 ) + 0.98 (Dec. 2014 ) = $3.32.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Sep13Dec14
ev2ebitda 15.5013.2716.46-6.87-7.31-8.41-16.92-12.30-7.894.48

Northern Trust Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda -9.55-12.30-7.92-3.68-7.89-12.13-8.78-11.734.524.48
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