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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Walgreen Co's enterprise value is \$68,252 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 12.40.

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 \$68.77. 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 23.40.

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) = 68251.769 / 5746 = 11.88

Walgreen Co's current Enterprise Value is \$68,252 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) = 68.77 / 2.936 = 23.42

Walgreen Co's share price for today is \$68.77.
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.

Related Terms

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

 Aug04 Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 ev2ebitda 13.97 15.85 14.82 11.84 8.65 7.88 5.74 5.90 8.16 9.28

Walgreen Co Quarterly Data

 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 ev2ebitda 5.60 5.03 8.16 8.19 9.24 10.18 9.28 10.62 11.98 12.37
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