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Walgreen Co (NYSE:WAG)
EV/EBITDA
12.27 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Walgreen Co's enterprise value is $72,260 Mil. Walgreen Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $5,746 Mil. Therefore, Walgreen Co's EV/EBITDA ratio for today is 12.27.

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 Co's stock price is $72.96. Walgreen Co's earnings per share for the trailing twelve months (TTM) ended in May. 2014 was $2.94. Therefore, Walgreen Co's P/E Ratio for today is 24.50.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=72259.876/5746
=12.58

Walgreen Co's current Enterprise Value is $72,260 Mil.
Walgreen Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 1354 (Aug. 2013 ) + 1481 (Nov. 2013 ) + 1547 (Feb. 2014 ) + 1364 (May. 2014 ) = $5,746 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 Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=72.96/2.936
=24.85

Walgreen Co's share price for today is $72.96.
Walgreen Co's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2014 was 0.686 (Aug. 2013 ) + 0.72 (Nov. 2013 ) + 0.78 (Feb. 2014 ) + 0.75 (May. 2014 ) = $2.94.

* 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 Co Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
ev2ebitda 13.9715.8514.8211.848.657.885.745.908.169.28

Walgreen Co Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebitda 5.605.038.168.199.2410.189.2810.6211.9812.37
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