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GuruFocus has detected 4 Warning Signs with Northern Trust Corp $NTRS.
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Northern Trust Corp (NAS:NTRS)
EV-to-EBITDA
-4.35 (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 $-8,014 Mil. Northern Trust Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $1,844 Mil. Therefore, Northern Trust Corp's EV/EBITDA ratio for today is -4.35.

NTRS' s EV-to-EBITDA Range Over the Past 10 Years
Min: -18.4   Max: 7.7
Current: -4.47

-18.4
7.7

During the past 13 years, the highest EV/EBITDA Ratio of Northern Trust Corp was 7.70. The lowest was -18.40. And the median was -5.60.

NTRS's EV-to-EBITDA is ranked lower than
99.99% of the 1086 Companies
in the Global Asset Management industry.

( Industry Median: 12.87 vs. NTRS: -4.47 )

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, Northern Trust Corp's stock price is $87.05. Northern Trust Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $4.17. Therefore, Northern Trust Corp's P/E Ratio for today is 20.88.

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)
=-8013.835/1844.2
=-4.35

Northern Trust Corp's current Enterprise Value is $-8,014 Mil.
Northern Trust Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 439.9 (Dec. 2015 ) + 449.5 (Mar. 2016 ) + 489.3 (Jun. 2016 ) + 465.5 (Sep. 2016 ) = $1,844 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=87.05/4.17
=20.88

Northern Trust Corp's share price for today is $87.05.
Northern Trust Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.99 (Dec. 2015 ) + 1.01 (Mar. 2016 ) + 1.09 (Jun. 2016 ) + 1.08 (Sep. 2016 ) = $4.17.

* 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.

Northern Trust Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -2.34-6.87-7.31-8.41-17.49-11.94-1.67-9.29-7.08-4.21

Northern Trust Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 2.31-9.291.981.052.75-7.08-6.846.80-5.15-4.21
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