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Alere Inc (NYSE:ALR)
EV/EBITDA
14.17 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Alere Inc's enterprise value is $7,159 Mil. Alere Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $505 Mil. Therefore, Alere Inc's EV/EBITDA ratio for today is 14.17.

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, Alere Inc's stock price is $38.40. Alere Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $-2.02. Therefore, Alere Inc's P/E Ratio for today is .

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7158.612/505.207
=14.17

Alere Inc's current Enterprise Value is $7,159 Mil.
Alere Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 160.577 (Dec. 2013 ) + 128.748 (Mar. 2014 ) + 91.75 (Jun. 2014 ) + 124.132 (Sep. 2014 ) = $505 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=38.40/-2.021
=

Alere Inc's share price for today is $38.40.
Alere Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.111 (Dec. 2013 ) + -0.14 (Mar. 2014 ) + -0.67 (Jun. 2014 ) + -1.1 (Sep. 2014 ) = $-2.02.

* 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.

Alere Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 22.0923.6129.80-62.2810.7312.67-10.4812.639.5112.28

Alere Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 11.1525.109.5111.1510.8212.1412.2812.0414.0814.37
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