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GuruFocus has detected 4 Warning Signs with WisdomTree Investments Inc $WETF.
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WisdomTree Investments Inc (NAS:WETF)
EV-to-EBITDA
14.75 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, WisdomTree Investments Inc's enterprise value is $1,106.2 Mil. WisdomTree Investments Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $75.0 Mil. Therefore, WisdomTree Investments Inc's EV/EBITDA ratio for today is 14.75.

WETF' s EV-to-EBITDA Range Over the Past 10 Years
Min: -1241.8   Max: 611.4
Current: 14.74

-1241.8
611.4

During the past 13 years, the highest EV/EBITDA Ratio of WisdomTree Investments Inc was 611.40. The lowest was -1241.80. And the median was 24.00.

WETF's EV-to-EBITDA is ranked lower than
61% of the 1333 Companies
in the Global Asset Management industry.

( Industry Median: 11.65 vs. WETF: 14.74 )

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, WisdomTree Investments Inc's stock price is $8.69. WisdomTree Investments Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.20. Therefore, WisdomTree Investments Inc's P/E Ratio for today is 43.45.

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


Definition

WisdomTree Investments Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1106.154/75.017
=14.75

WisdomTree Investments Inc's current Enterprise Value is $1,106.2 Mil.
WisdomTree Investments Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 21.988 (Mar. 2016 ) + 11.486 (Jun. 2016 ) + 14.557 (Sep. 2016 ) + 26.986 (Dec. 2016 ) = $75.0 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

WisdomTree Investments Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.69/0.2
=43.45

WisdomTree Investments Inc's share price for today is $8.69.
WisdomTree Investments Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.09 (Mar. 2016 ) + 0.03 (Jun. 2016 ) + 0.06 (Sep. 2016 ) + 0.02 (Dec. 2016 ) = $0.20.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

WisdomTree Investments Inc Annual Data

Dec00Dec01Dec02Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 0.04-94.53-2.69-120.75200.2063.9942.4124.2412.9818.19

WisdomTree Investments Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 18.2124.2432.8026.7516.0512.989.179.4512.9018.19
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