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ARRIS Group Inc (NAS:ARRS)
EV/EBITDA
8.68 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, ARRIS Group Inc's enterprise value is $5,226 Mil. ARRIS Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $602 Mil. Therefore, ARRIS Group Inc's EV/EBITDA ratio for today is 8.68.

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, ARRIS Group Inc's stock price is $29.46. ARRIS Group Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.89. Therefore, ARRIS Group Inc's P/E Ratio for today is 33.10.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5225.970/602.082
=8.68

ARRIS Group Inc's current Enterprise Value is $5,226 Mil.
ARRIS Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 129.895 (Dec. 2013 ) + 119.397 (Mar. 2014 ) + 161.803 (Jun. 2014 ) + 190.987 (Sep. 2014 ) = $602 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=29.46/0.89
=33.10

ARRIS Group Inc's share price for today is $29.46.
ARRIS Group Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.02 (Dec. 2013 ) + 0.28 (Mar. 2014 ) + 0.26 (Jun. 2014 ) + 0.37 (Sep. 2014 ) = $0.89.

* 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.

ARRIS Group Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 41.2813.189.376.46-17.124.855.4720.199.2920.68

ARRIS Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 29.1423.239.2912.5342.7127.5020.6815.3611.098.58
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