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Prudential Financial Inc (NYSE:PRU)
EV/EBITDA
15.48 (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 $37,003 Mil. Prudential Financial Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $2,390 Mil. Therefore, Prudential Financial Inc's EV/EBITDA ratio for today is 15.48.

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 $79.14. Prudential Financial Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $2.88. Therefore, Prudential Financial Inc's P/E Ratio for today is 27.48.

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)
=37002.520/2390
=15.48

Prudential Financial Inc's current Enterprise Value is $37,003 Mil.
Prudential Financial Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 1759 (Mar. 2014 ) + 1645 (Jun. 2014 ) + 559 (Sep. 2014 ) + -1573 (Dec. 2014 ) = $2,390 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)
=79.14/2.88
=27.48

Prudential Financial Inc's share price for today is $79.14.
Prudential Financial Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 2.59 (Mar. 2014 ) + 2.22 (Jun. 2014 ) + 1.091 (Sep. 2014 ) + -3.021 (Dec. 2014 ) = $2.88.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 11.8211.8911.23-55.4415.848.598.8729.36-39.5817.78

Prudential Financial Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda -27.1429.36161.57-11.18-44.32-39.5826.8512.9216.0517.78
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