• Return to Headlines

eHealth is Among the Companies in the Insurance Brokers Industry With the Highest EV/EBITDA Ratio (EHTH, AON, AJG, MMC, BRO)

By Nick Russo

Below are the three companies in the Insurance Brokers industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

eHealth ranks highest with a an EV/EBITDA ratio of 45.41. AON is next with a an EV/EBITDA ratio of 15.20. Arthur J Gallagher ranks third highest with a an EV/EBITDA ratio of 15.10.

Marsh & McLennan follows with a an EV/EBITDA ratio of 13.69, and Brown & Brown rounds out the top five with a an EV/EBITDA ratio of 11.68.

SmarTrend recommended that subscribers consider buying shares of eHealth on November 14th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $9.93. Since that recommendation, shares of eHealth have risen 18.7%. We continue to monitor eHealth for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio ehealth arthur j gallagher marsh & mclennan brown & brown