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Altera Corp. (NAS:ALTR)
EV/EBITDA
17.46 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Altera Corp.'s enterprise value is $9,313 Mil. Altera Corp.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $540 Mil. Therefore, Altera Corp.'s EV/EBITDA ratio for today is 17.46.

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, Altera Corp.'s stock price is $34.11. Altera Corp.'s earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.36. Therefore, Altera Corp.'s P/E Ratio for today is 25.20.

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


Definition

Altera Corp.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9312.940/539.514
=17.26

Altera Corp.'s current Enterprise Value is $9,313 Mil.
Altera Corp.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 130.975 (Mar. 2013 ) + 127.405 (Jun. 2013 ) + 144.231 (Sep. 2013 ) + 136.903 (Dec. 2013 ) = $540 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.

Altera Corp.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=34.11/1.357
=25.14

Altera Corp.'s share price for today is $34.11.
Altera Corp.'s Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.37 (Mar. 2013 ) + 0.31 (Jun. 2013 ) + 0.37 (Sep. 2013 ) + 0.307 (Dec. 2013 ) = $1.36.

* 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.

Altera Corp. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 18.7015.7817.4013.339.1516.6910.1210.1913.3116.54

Altera Corp. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 7.4810.1913.0412.3412.8213.3113.6213.5116.8516.54
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