Switch to:
GuruFocus has detected 5 Warning Signs with NorthWestern Corp $NWE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
NorthWestern Corp (NYSE:NWE)
EV-to-EBITDA
12.29 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, NorthWestern Corp's enterprise value is $4,980 Mil. NorthWestern Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $405 Mil. Therefore, NorthWestern Corp's EV/EBITDA ratio for today is 12.29.

NWE' s EV-to-EBITDA Range Over the Past 10 Years
Min: 5.9   Max: 66
Current: 12.29

5.9
66

During the past 13 years, the highest EV/EBITDA Ratio of NorthWestern Corp was 66.00. The lowest was 5.90. And the median was 9.05.

NWE's EV-to-EBITDA is ranked lower than
67% of the 610 Companies
in the Global Utilities - Diversified industry.

( Industry Median: 10.07 vs. NWE: 12.29 )

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, NorthWestern Corp's stock price is $58.51. NorthWestern Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.39. Therefore, NorthWestern Corp's P/E Ratio for today is 17.26.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4980.123/405.283
=12.29

NorthWestern Corp's current Enterprise Value is $4,980 Mil.
NorthWestern Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 101.823 (Mar. 2016 ) + 103.64 (Jun. 2016 ) + 95.879 (Sep. 2016 ) + 103.941 (Dec. 2016 ) = $405 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=58.51/3.39
=17.26

NorthWestern Corp's share price for today is $58.51.
NorthWestern Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.79 (Mar. 2016 ) + 0.73 (Jun. 2016 ) + 0.92 (Sep. 2016 ) + 0.95 (Dec. 2016 ) = $3.39.

* 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.

NorthWestern Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 11.796.637.958.228.898.6710.6715.0711.2712.00

NorthWestern Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 10.7215.0713.6911.6911.8611.2713.1312.7611.7212.00
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)
FEEDBACK