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Western Union Co (NYSE:WU)
EV/EBITDA
5.13 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Western Union Co's enterprise value is $7,149 Mil. Western Union Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,363 Mil. Therefore, Western Union Co's EV/EBITDA ratio for today is 5.13.

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, Western Union Co's stock price is $16.24. Western Union Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $1.43. Therefore, Western Union Co's P/E Ratio for today is 11.40.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7149.218/1362.8
=5.25

Western Union Co's current Enterprise Value is $7,149 Mil.
Western Union Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 369.1 (Sep. 2013 ) + 307.6 (Dec. 2013 ) + 342.2 (Mar. 2014 ) + 343.9 (Jun. 2014 ) = $1,363 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.

Western Union Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=16.24/1.432
=11.34

Western Union Co's share price for today is $16.24.
Western Union Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.39 (Sep. 2013 ) + 0.312 (Dec. 2013 ) + 0.37 (Mar. 2014 ) + 0.36 (Jun. 2014 ) = $1.43.

* 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.

Western Union Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.0012.4912.607.799.918.907.396.308.35

Western Union Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 6.526.226.516.304.756.346.378.355.465.65
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