Switch to:
GuruFocus has detected 5 Warning Signs with Northern Trust Corp $NTRS.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Northern Trust Corp (NAS:NTRS)
EV-to-EBITDA
12.76 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Northern Trust Corp's enterprise value is $24,665 Mil. Northern Trust Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,933 Mil. Therefore, Northern Trust Corp's EV/EBITDA ratio for today is 12.76.

NTRS' s EV-to-EBITDA Range Over the Past 10 Years
Min: -18.4   Max: 12.9
Current: 12.76

-18.4
12.9

During the past 13 years, the highest EV/EBITDA Ratio of Northern Trust Corp was 12.90. The lowest was -18.40. And the median was -5.05.

NTRS's EV-to-EBITDA is ranked lower than
58% of the 1194 Companies
in the Global Asset Management industry.

( Industry Median: 10.57 vs. NTRS: 12.76 )

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, Northern Trust Corp's stock price is $94.20. Northern Trust Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $4.37. Therefore, Northern Trust Corp's P/E Ratio for today is 21.56.

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


Definition

Northern Trust Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=24664.900/1933.1
=12.76

Northern Trust Corp's current Enterprise Value is $24,665 Mil.
Northern Trust Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 489.3 (Jun. 2016 ) + 465.5 (Sep. 2016 ) + 486.1 (Dec. 2016 ) + 492.2 (Mar. 2017 ) = $1,933 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.

Northern Trust Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=94.20/4.37
=21.56

Northern Trust Corp's share price for today is $94.20.
Northern Trust Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.09 (Jun. 2016 ) + 1.08 (Sep. 2016 ) + 1.11 (Dec. 2016 ) + 1.09 (Mar. 2017 ) = $4.37.

* 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.

Northern Trust Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -2.34-6.87-7.31-8.41-17.49-11.94-1.67-9.295.9610.22

Northern Trust Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda -9.291.981.052.755.96-6.846.80-5.1510.2211.85
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK