Switch to:
SVB Financial Group (NAS:SIVB)
EV/EBITDA
7.86 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, SVB Financial Group's enterprise value is $5,702 Mil. SVB Financial Group's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $721 Mil. Therefore, SVB Financial Group's EV/EBITDA ratio for today is 7.86.

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, SVB Financial Group's stock price is $114.29. SVB Financial Group's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $4.68. Therefore, SVB Financial Group's P/E Ratio for today is 24.40.

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


Definition

SVB Financial Group's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5701.543/721.071
=7.91

SVB Financial Group's current Enterprise Value is $5,702 Mil.
SVB Financial Group's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 95.425 (Mar. 2013 ) + 115.258 (Jun. 2013 ) + 272.777 (Sep. 2013 ) + 237.611 (Dec. 2013 ) = $721 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.

SVB Financial Group's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=114.29/4.684
=24.40

SVB Financial Group's share price for today is $114.29.
SVB Financial Group's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.9 (Mar. 2013 ) + 1.06 (Jun. 2013 ) + 1.46 (Sep. 2013 ) + 1.264 (Dec. 2013 ) = $4.68.

* 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.

SVB Financial Group Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 14.1110.5110.409.883.74-7.424.335.647.386.69

SVB Financial Group Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 2.805.6410.436.7711.227.387.0010.015.556.69
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide