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Rite Aid Corp (NYSE:RAD)
EV/EBITDA
11.46 (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 $14,227 Mil. Rite Aid Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2015 was $1,241 Mil. Therefore, Rite Aid Corp's EV/EBITDA ratio for today is 11.46.

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 $8.14. Rite Aid Corp's earnings per share for the trailing twelve months (TTM) ended in Feb. 2015 was $2.08. Therefore, Rite Aid Corp's P/E Ratio for today is 3.92.

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)
=14227.167/1241.06
=11.46

Rite Aid Corp's current Enterprise Value is $14,227 Mil.
Rite Aid Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2015 was 257.252 (May. 2014 ) + 350.143 (Aug. 2014 ) + 308.731 (Nov. 2014 ) + 324.934 (Feb. 2015 ) = $1,241 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)
=8.14/2.079
=3.92

Rite Aid Corp's share price for today is $8.14.
Rite Aid Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2015 was 0.04 (May. 2014 ) + 0.13 (Aug. 2014 ) + 0.1 (Nov. 2014 ) + 1.809 (Feb. 2015 ) = $2.08.

* 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

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
ev2ebitda 9.5111.8912.89-4.0813.5414.5713.238.0411.0910.73

Rite Aid Corp Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
ev2ebitda 9.798.047.848.0210.1011.0913.2210.169.3810.73
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