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Adobe Systems Inc (NAS:ADBE)
EV/EBITDA
44.52 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Adobe Systems Inc's enterprise value is $32,010 Mil. Adobe Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $754 Mil. Therefore, Adobe Systems Inc's EV/EBITDA ratio for today is 44.52.

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, Adobe Systems Inc's stock price is $69.25. Adobe Systems Inc's earnings per share for the trailing twelve months (TTM) ended in May. 2014 was $0.55. Therefore, Adobe Systems Inc's P/E Ratio for today is 126.50.

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


Definition

Adobe Systems Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=32009.845/753.669
=42.47

Adobe Systems Inc's current Enterprise Value is $32,010 Mil.
Adobe Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 192.182 (Aug. 2013 ) + 186.342 (Nov. 2013 ) + 159.118 (Feb. 2014 ) + 216.027 (May. 2014 ) = $754 Mil.

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

Adobe Systems Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=69.25/0.547
=126.60

Adobe Systems Inc's share price for today is $69.25.
Adobe Systems Inc's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2014 was 0.16 (Aug. 2013 ) + 0.127 (Nov. 2013 ) + 0.09 (Feb. 2014 ) + 0.17 (May. 2014 ) = $0.55.

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

Adobe Systems Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
ev2ebitda 19.5017.7724.8517.417.8217.6510.208.8010.1335.86

Adobe Systems Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebitda 11.019.849.6310.1313.3517.3722.5535.8643.8139.39
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