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Vonage Holdings Corp (NYSE:VG)
EV/EBIT
20.01 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Vonage Holdings Corp's enterprise value is $812.7 Mil. Vonage Holdings Corp's operating income for the trailing twelve months (TTM) ended in Sep. 2014 was $40.6 Mil. Therefore, Vonage Holdings Corp's EV/EBIT ratio for today is 20.01.

VG' s 10-Year EV/EBIT Range
Min: -83.4   Max: 31.3
Current: 20.11

-83.4
31.3

During the past 13 years, the highest EV/EBIT Ratio of Vonage Holdings Corp was 31.30. The lowest was -83.40. And the median was 6.80.

VG's EV/EBITis ranked higher than
82% of the 1019 Companies
in the Global Telecom Services industry.

( Industry Median: 17.20 vs. VG: 20.11 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Vonage Holdings Corp's enterprise value for the quarter that ended in Sep. 2014 was $732.9 Mil. Vonage Holdings Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was $40.6 Mil. Vonage Holdings Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 was 5.54%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=812.702/40.611
=20.01

Vonage Holdings Corp's current Enterprise Value is $812.7 Mil.
Vonage Holdings Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 6.636 (Dec. 2013 ) + 10.322 (Mar. 2014 ) + 12.016 (Jun. 2014 ) + 11.637 (Sep. 2014 ) = $40.6 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 Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Sep. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Sep. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Sep. 2014 )
=40.611/732.85
=5.54 %

Vonage Holdings Corp's Enterprise Value for the quarter that ended in Sep. 2014 was $732.9 Mil.
Vonage Holdings Corp's Operating Income for the trailing twelve months (TTM) ended in Sep. 2014 was 6.636 (Dec. 2013 ) + 10.322 (Mar. 2014 ) + 12.016 (Jun. 2014 ) + 11.637 (Sep. 2014 ) = $40.6 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 Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebit 0.000.00-2.51-1.85-42.278.206.614.997.2614.41

Vonage Holdings Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebit 6.217.267.268.836.838.8114.4123.8121.8218.05
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