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Prudential Financial Inc (NYSE:PRU)
EV/EBITDA
16.31 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Prudential Financial Inc's enterprise value is $51,437 Mil. Prudential Financial Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $3,154 Mil. Therefore, Prudential Financial Inc's EV/EBITDA ratio for today is 16.31.

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, Prudential Financial Inc's stock price is $89.93. Prudential Financial Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.89. Therefore, Prudential Financial Inc's P/E Ratio for today is 18.39.

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


Definition

Prudential Financial Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=51437.000/3154
=16.31

Prudential Financial Inc's current Enterprise Value is $51,437 Mil.
Prudential Financial Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was -809 (Dec. 2013 ) + 1759 (Mar. 2014 ) + 1645 (Jun. 2014 ) + 559 (Sep. 2014 ) = $3,154 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.

Prudential Financial Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=89.93/4.891
=18.39

Prudential Financial Inc's share price for today is $89.93.
Prudential Financial Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -1.01 (Dec. 2013 ) + 2.59 (Mar. 2014 ) + 2.22 (Jun. 2014 ) + 1.091 (Sep. 2014 ) = $4.89.

* 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.

Prudential Financial Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 10.4911.8211.8911.23-55.4415.848.598.8729.36-42.17

Prudential Financial Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 7.40-27.1429.36161.57-11.18-44.32-42.1726.8512.9416.22
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