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GuruFocus has detected 6 Warning Signs with Torchmark Corp $TMK.
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Torchmark Corp (NYSE:TMK)
EV-to-EBITDA
11.81 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Torchmark Corp's enterprise value is $10,078 Mil. Torchmark Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $853 Mil. Therefore, Torchmark Corp's EV/EBITDA ratio for today is 11.81.

TMK' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.3   Max: 12.6
Current: 11.81

3.3
12.6

During the past 13 years, the highest EV/EBITDA Ratio of Torchmark Corp was 12.60. The lowest was 3.30. And the median was 8.20.

TMK's EV-to-EBITDA is ranked higher than
51% of the 117 Companies
in the Global Insurance - Life industry.

( Industry Median: 10.01 vs. TMK: 11.81 )

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, Torchmark Corp's stock price is $75.23. Torchmark Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $4.60. Therefore, Torchmark Corp's P/E Ratio for today is 16.35.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10077.641/853.203
=11.81

Torchmark Corp's current Enterprise Value is $10,078 Mil.
Torchmark Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 222.454 (Jun. 2016 ) + 221.842 (Sep. 2016 ) + 196.467 (Dec. 2016 ) + 212.44 (Mar. 2017 ) = $853 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=75.23/4.6
=16.35

Torchmark Corp's share price for today is $75.23.
Torchmark Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 1.13 (Jun. 2016 ) + 1.25 (Sep. 2016 ) + 1.11 (Dec. 2016 ) + 1.11 (Mar. 2017 ) = $4.60.

* 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.

Torchmark Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 7.376.736.356.226.587.119.699.389.6311.64

Torchmark Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 9.389.499.979.529.639.1310.2610.3311.6412.14
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