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GuruFocus has detected 8 Warning Signs with ARMOUR Residential REIT Inc $ARR.
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ARMOUR Residential REIT Inc (NYSE:ARR)
EV-to-EBITDA
5.59 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, ARMOUR Residential REIT Inc's enterprise value is $757.3 Mil. ARMOUR Residential REIT Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $135.5 Mil. Therefore, ARMOUR Residential REIT Inc's EV/EBITDA ratio for today is 5.59.

ARR' s EV-to-EBITDA Range Over the Past 10 Years
Min: -70.2   Max: 128
Current: 5.59

-70.2
128

During the past 10 years, the highest EV/EBITDA Ratio of ARMOUR Residential REIT Inc was 128.00. The lowest was -70.20. And the median was 2.80.

ARR's EV-to-EBITDA is ranked higher than
98% of the 904 Companies
in the Global REIT - Residential industry.

( Industry Median: 17.01 vs. ARR: 5.59 )

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, ARMOUR Residential REIT Inc's stock price is $25.91. ARMOUR Residential REIT Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $7.37. Therefore, ARMOUR Residential REIT Inc's P/E Ratio for today is 3.52.

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


Definition

ARMOUR Residential REIT Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=757.284/135.523
=5.59

ARMOUR Residential REIT Inc's current Enterprise Value is $757.3 Mil.
ARMOUR Residential REIT Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 37.532 (Jun. 2016 ) + 32.21 (Sep. 2016 ) + 33.969 (Dec. 2016 ) + 31.812 (Mar. 2017 ) = $135.5 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.

ARMOUR Residential REIT Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=25.91/7.37
=3.52

ARMOUR Residential REIT Inc's share price for today is $25.91.
ARMOUR Residential REIT Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.47 (Jun. 2016 ) + 3.12 (Sep. 2016 ) + 2.45 (Dec. 2016 ) + 1.33 (Mar. 2017 ) = $7.37.

* 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.

ARMOUR Residential REIT Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -1,727.5892.05-8.1014.623.293.882.442.311.893.43

ARMOUR Residential REIT Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 2.311.972.011.971.892.251.632.343.434.72
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