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Discover Financial Services  (NYSE:DFS) EV-to-EBITDA: 9.77 (As of Today)

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Discover Financial Services's enterprise value is $38,497 Mil. Discover Financial Services's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was $3,942 Mil. Therefore, Discover Financial Services's EV-to-EBITDA for today is 9.77.

NYSE:DFS' s EV-to-EBITDA Range Over the Past 10 Years
Min: -2.3   Max: 16.2
Current: 9.77

-2.3
16.2

During the past 13 years, the highest EV-to-EBITDA of Discover Financial Services was 16.20. The lowest was -2.30. And the median was 8.90.

NYSE:DFS's EV-to-EBITDA is ranked higher than
66% of the 350 Companies
in the Global industry.

( Industry Median: 15.57 vs. NYSE:DFS: 9.77 )

EV-to-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 PE Ratio to determine the fair market value of a company.

As of today, Discover Financial Services's stock price is $65.66. Discover Financial Services's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2017 was $5.79. Therefore, Discover Financial Services's PE Ratio for today is 11.34.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio.


Historical Data

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

* Premium members only.

Discover Financial Services Annual Data

Nov07 Nov08 Nov09 Nov10 Nov11 Nov12 Dec13 Dec14 Dec15 Dec16
EV-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.29 9.59 11.16 9.55 10.51

Discover Financial Services Quarterly Data

Aug12 Nov12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
EV-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.96 9.40 10.51 9.69 9.48

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Discover Financial Services's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=38496.629/3942
=9.77

Discover Financial Services's current Enterprise Value is $38,497 Mil.
Discover Financial Services's EBITDA for the trailing twelve months (TTM) ended in Jun. 2017 was 1047 (Sep. 2016 ) + 972 (Dec. 2016 ) + 961 (Mar. 2017 ) + 962 (Jun. 2017 ) = $3,942 Mil.

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


Explanation

EV-to-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 PE Ratio to determine the fair market value of a company.

Discover Financial Services's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=65.66/5.79
=11.34

Discover Financial Services's share price for today is $65.66.
Discover Financial Services's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2017 was 1.56 (Sep. 2016 ) + 1.4 (Dec. 2016 ) + 1.43 (Mar. 2017 ) + 1.4 (Jun. 2017 ) = $5.79.

* 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-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms


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