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Rite Aid Corp (NYSE:RAD)
EV/EBITDA
9.62 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rite Aid Corp's enterprise value is $10,940 Mil. Rite Aid Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Aug. 2014 was $1,138 Mil. Therefore, Rite Aid Corp's EV/EBITDA ratio for today is 9.62.

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, Rite Aid Corp's stock price is $5.59. Rite Aid Corp's earnings per share for the trailing twelve months (TTM) ended in Aug. 2014 was $0.23. Therefore, Rite Aid Corp's P/E Ratio for today is 24.30.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10939.658/1137.761
=9.62

Rite Aid Corp's current Enterprise Value is $10,940 Mil.
Rite Aid Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Aug. 2014 was 276.943 (Nov. 2013 ) + 253.423 (Feb. 2014 ) + 257.252 (May. 2014 ) + 350.143 (Aug. 2014 ) = $1,138 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.59/0.23
=24.30

Rite Aid Corp's share price for today is $5.59.
Rite Aid Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Aug. 2014 was 0.04 (Nov. 2013 ) + 0.02 (Feb. 2014 ) + 0.04 (May. 2014 ) + 0.13 (Aug. 2014 ) = $0.23.

* 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.

Rite Aid Corp Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ev2ebitda 8.049.5111.9912.87-4.1113.5414.5713.238.0411.09

Rite Aid Corp Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ev2ebitda 13.5012.179.798.047.848.0210.1011.0913.2210.16
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