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Walgreen Company (NYSE:WAG)
EV/EBITDA
11.77 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Walgreen Company's enterprise value is $66,991 Mil. Walgreen Company's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $5,691 Mil. Therefore, Walgreen Company's EV/EBITDA ratio for today is 11.77.

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, Walgreen Company's stock price is $66.75. Walgreen Company's earnings per share for the trailing twelve months (TTM) ended in Feb. 2014 was $2.84. Therefore, Walgreen Company's P/E Ratio for today is 23.50.

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


Definition

Walgreen Company's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=66990.601/5691
=11.77

Walgreen Company's current Enterprise Value is $66,991 Mil.
Walgreen Company's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 1309 (May. 2013 ) + 1354 (Aug. 2013 ) + 1481 (Nov. 2013 ) + 1547 (Feb. 2014 ) = $5,691 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.

Walgreen Company's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=66.75/2.836
=23.54

Walgreen Company's share price for today is $66.75.
Walgreen Company's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2014 was 0.65 (May. 2013 ) + 0.686 (Aug. 2013 ) + 0.72 (Nov. 2013 ) + 0.78 (Feb. 2014 ) = $2.84.

* 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.

Walgreen Company Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev2ebitda 13.9715.8514.8211.848.657.885.745.908.169.28

Walgreen Company Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebitda 5.685.605.038.168.199.2410.189.2810.6211.74
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