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GuruFocus has detected 4 Warning Signs with E*TRADE Financial Corp $ETFC.
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E*TRADE Financial Corp (NAS:ETFC)
EV-to-EBITDA
10.75 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, E*TRADE Financial Corp's enterprise value is $11,996 Mil. E*TRADE Financial Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,116 Mil. Therefore, E*TRADE Financial Corp's EV/EBITDA ratio for today is 10.75.

ETFC' s EV-to-EBITDA Range Over the Past 10 Years
Min: -29.2   Max: 117.7
Current: 12.11

-29.2
117.7

During the past 13 years, the highest EV/EBITDA Ratio of E*TRADE Financial Corp was 117.70. The lowest was -29.20. And the median was 9.45.

ETFC's EV-to-EBITDA is ranked higher than
64% of the 545 Companies
in the Global Capital Markets industry.

( Industry Median: 14.13 vs. ETFC: 12.11 )

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, E*TRADE Financial Corp's stock price is $40.72. E*TRADE Financial Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.93. Therefore, E*TRADE Financial Corp's P/E Ratio for today is 21.10.

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


Definition

E*TRADE Financial Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11996.223/1116
=10.75

E*TRADE Financial Corp's current Enterprise Value is $11,996 Mil.
E*TRADE Financial Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 273 (Jun. 2016 ) + 287 (Sep. 2016 ) + 270 (Dec. 2016 ) + 286 (Mar. 2017 ) = $1,116 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.

E*TRADE Financial Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=40.72/1.93
=21.10

E*TRADE Financial Corp's share price for today is $40.72.
E*TRADE Financial Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.48 (Jun. 2016 ) + 0.51 (Sep. 2016 ) + 0.46 (Dec. 2016 ) + 0.48 (Mar. 2017 ) = $1.93.

* 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.

E*TRADE Financial Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -5.27-5.90-28.3313.235.904.9810.6613.7818.978.67

E*TRADE Financial Corp Quarterly Data

Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17Jun17
ev2ebitda 13.0912.6421.6218.9712.969.548.168.679.300.00
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