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GuruFocus has detected 2 Warning Signs with American International Group Inc $AIG.
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American International Group Inc (NYSE:AIG)
EV-to-EBITDA
10.89 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, American International Group Inc's enterprise value is $76,493 Mil. American International Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $7,024 Mil. Therefore, American International Group Inc's EV/EBITDA ratio for today is 10.89.

AIG' s EV-to-EBITDA Range Over the Past 10 Years
Min: -29.3   Max: 22.6
Current: 10.89

-29.3
22.6

During the past 13 years, the highest EV/EBITDA Ratio of American International Group Inc was 22.60. The lowest was -29.30. And the median was 7.30.

AIG's EV-to-EBITDA is ranked lower than
68% of the 150 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 7.04 vs. AIG: 10.89 )

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, American International Group Inc's stock price is $63.05. American International Group Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $0.53. Therefore, American International Group Inc's P/E Ratio for today is 118.96.

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


Definition

American International Group Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=76493.470/7024
=10.89

American International Group Inc's current Enterprise Value is $76,493 Mil.
American International Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 4251 (Jun. 2016 ) + 1610 (Sep. 2016 ) + -1874 (Dec. 2016 ) + 3037 (Mar. 2017 ) = $7,024 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.

American International Group Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=63.05/0.53
=118.96

American International Group Inc's share price for today is $63.05.
American International Group Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.68 (Jun. 2016 ) + 0.42 (Sep. 2016 ) + -2.75 (Dec. 2016 ) + 1.18 (Mar. 2017 ) = $0.53.

* 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.

American International Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 21.85-2.5616.604.5110.805.685.745.7410.0115.60

American International Group Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 5.745.125.986.8710.0115.8414.4414.4115.6010.99
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