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Rite Aid Corp (NYSE:RAD)
EV/EBITDA
10.80 (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 $12,631 Mil. Rite Aid Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $1,170 Mil. Therefore, Rite Aid Corp's EV/EBITDA ratio for today is 10.80.

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 $7.26. Rite Aid Corp's earnings per share for the trailing twelve months (TTM) ended in Nov. 2014 was $0.33. Therefore, Rite Aid Corp's P/E Ratio for today is 22.00.

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)
=12631.120/1169.549
=10.80

Rite Aid Corp's current Enterprise Value is $12,631 Mil.
Rite Aid Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 253.423 (Feb. 2014 ) + 257.252 (May. 2014 ) + 350.143 (Aug. 2014 ) + 308.731 (Nov. 2014 ) = $1,170 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)
=7.26/0.33
=22.00

Rite Aid Corp's share price for today is $7.26.
Rite Aid Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Nov. 2014 was 0.06 (Feb. 2014 ) + 0.04 (May. 2014 ) + 0.13 (Aug. 2014 ) + 0.1 (Nov. 2014 ) = $0.33.

* 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 8.049.5111.8912.89-4.0813.5414.5713.238.0411.09

Rite Aid Corp Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev2ebitda 12.179.798.047.848.0210.1011.0913.2210.169.31
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