Switch to:
GuruFocus has detected 2 Warning Signs with Prudential Financial Inc $PRU.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Prudential Financial Inc (NYSE:PRU)
EV-to-EBITDA
8.18 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Prudential Financial Inc's enterprise value is $48,372 Mil. Prudential Financial Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $5,916 Mil. Therefore, Prudential Financial Inc's EV/EBITDA ratio for today is 8.18.

PRU' s EV-to-EBITDA Range Over the Past 10 Years
Min: -104   Max: 182
Current: 8.17

-104
182

During the past 13 years, the highest EV/EBITDA Ratio of Prudential Financial Inc was 182.00. The lowest was -104.00. And the median was 9.45.

PRU's EV-to-EBITDA is ranked lower than
51% of the 73 Companies
in the Global Insurance - Life industry.

( Industry Median: 7.99 vs. PRU: 8.17 )

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, Prudential Financial Inc's stock price is $105.31. Prudential Financial Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $9.89. Therefore, Prudential Financial Inc's P/E Ratio for today is 10.65.

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


Definition

Prudential Financial Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=48371.990/5916
=8.18

Prudential Financial Inc's current Enterprise Value is $48,372 Mil.
Prudential Financial Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 1598 (Jun. 2016 ) + 2293 (Sep. 2016 ) + 233 (Dec. 2016 ) + 1792 (Mar. 2017 ) = $5,916 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.

Prudential Financial Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=105.31/9.89
=10.65

Prudential Financial Inc's share price for today is $105.31.
Prudential Financial Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 2.04 (Jun. 2016 ) + 4.07 (Sep. 2016 ) + 0.69 (Dec. 2016 ) + 3.09 (Mar. 2017 ) = $9.89.

* 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.

Prudential Financial Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 11.15-55.4416.108.598.7229.36-39.5820.205.097.41

Prudential Financial Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 20.2011.7312.476.705.094.293.704.267.418.30
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