Switch to:
Torchmark Corp (NYSE:TMK)
EV/EBITDA
10.15 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Torchmark Corp's enterprise value is $8,574 Mil. Torchmark Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $845 Mil. Therefore, Torchmark Corp's EV/EBITDA ratio for today is 10.15.

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, Torchmark Corp's stock price is $58.82. Torchmark Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $4.06. Therefore, Torchmark Corp's P/E Ratio for today is 14.50.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=8574.046/844.55
=10.15

Torchmark Corp's current Enterprise Value is $8,574 Mil.
Torchmark Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 205.795 (Jun. 2014 ) + 208.597 (Sep. 2014 ) + 230.666 (Dec. 2014 ) + 199.492 (Mar. 2015 ) = $845 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=58.82/4.057
=14.50

Torchmark Corp's share price for today is $58.82.
Torchmark Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.98 (Jun. 2014 ) + 1 (Sep. 2014 ) + 1.127 (Dec. 2014 ) + 0.95 (Mar. 2015 ) = $4.06.

* 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.

Torchmark Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 8.568.237.376.726.356.226.587.119.609.38

Torchmark Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 7.117.898.348.859.609.299.709.239.389.60
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)

GuruFocus Premium Plus Membership

FEEDBACK