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GuruFocus has detected 1 Warning Sign with Rite Aid Corp $RAD.
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Rite Aid Corp (NYSE:RAD)
EV-to-EBITDA
9.91 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rite Aid Corp's enterprise value is $10,392 Mil. Rite Aid Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2017 was $1,049 Mil. Therefore, Rite Aid Corp's EV/EBITDA ratio for today is 9.91.

RAD' s EV-to-EBITDA Range Over the Past 10 Years
Min: -6.2   Max: 17.3
Current: 9.91

-6.2
17.3

During the past 13 years, the highest EV/EBITDA Ratio of Rite Aid Corp was 17.30. The lowest was -6.20. And the median was 12.40.

RAD's EV-to-EBITDA is ranked higher than
64% of the 328 Companies
in the Global Pharmaceutical Retailers industry.

( Industry Median: 11.91 vs. RAD: 9.91 )

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, Rite Aid Corp's stock price is $3.14. Rite Aid Corp's earnings per share for the trailing twelve months (TTM) ended in Feb. 2017 was $0.00. Therefore, Rite Aid Corp's P/E Ratio for today is .

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


Definition

Rite Aid Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10391.814/1048.667
=9.91

Rite Aid Corp's current Enterprise Value is $10,392 Mil.
Rite Aid Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2017 was 233.004 (May. 2016 ) + 273.14 (Aug. 2016 ) + 256.477 (Nov. 2016 ) + 286.046 (Feb. 2017 ) = $1,049 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.

Rite Aid Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=3.14/0
=

Rite Aid Corp's share price for today is $3.14.
Rite Aid Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2017 was -0.004 (May. 2016 ) + 0.01 (Aug. 2016 ) + 0.01 (Nov. 2016 ) + -0.016 (Feb. 2017 ) = $0.00.

* 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.

Rite Aid Corp Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
ev2ebitda 13.03-4.1113.6314.6913.378.0811.1410.7412.2912.78

Rite Aid Corp Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
ev2ebitda 9.4010.7411.1613.5012.5912.2912.3612.5513.9912.78
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