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Vonage Holdings Corporation (NYSE:VG)
EV/EBIT
16.70 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Vonage Holdings Corporation's enterprise value is $864.4 Mil. Vonage Holdings Corporation's operating income for the trailing twelve months (TTM) ended in Dec. 2013 was $52.3 Mil. Therefore, Vonage Holdings Corporation's EV/EBIT ratio for today is 16.70.

VG' s 10-Year EV/EBIT Range
Min: 4   Max: 31.7
Current: 16.7

4
31.7

During the past 13 years, the highest EV/EBIT Ratio of Vonage Holdings Corporation was 31.70. The lowest was 4.00. And the median was 8.30.

VG's EV/EBITis ranked higher than
58% of the 711 Companies
in the Global Telecom Services industry.

( Industry Median: 14.25 vs. VG: 16.70 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Vonage Holdings Corporation's enterprise value for the quarter that ended in Dec. 2013 was $754.3 Mil. Vonage Holdings Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was $52.3 Mil. Vonage Holdings Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 was 6.94%.


Definition

Vonage Holdings Corporation's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=864.443/52.349
=16.51

Vonage Holdings Corporation's current Enterprise Value is $864.4 Mil.
Vonage Holdings Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 22.474 (Mar. 2013 ) + 14.016 (Jun. 2013 ) + 9.223 (Sep. 2013 ) + 6.636 (Dec. 2013 ) = $52.3 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Vonage Holdings Corporation's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2013 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2013 )=Operating Income (TTM)/Enterprise Value (Q: Dec. 2013 )
=52.349/754.2962
=6.94 %

Vonage Holdings Corporation's Enterprise Value for the quarter that ended in Dec. 2013 was $754.3 Mil.
Vonage Holdings Corporation's Operating Income for the trailing twelve months (TTM) ended in Dec. 2013 was 22.474 (Mar. 2013 ) + 14.016 (Jun. 2013 ) + 9.223 (Sep. 2013 ) + 6.636 (Dec. 2013 ) = $52.3 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Vonage Holdings Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.000.000.000.008.636.614.997.2614.41

Vonage Holdings Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebit 5.594.994.896.217.267.268.836.838.9414.41
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