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Aruba Networks Inc (NAS:ARUN)
EV/EBITDA
63.63 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Aruba Networks Inc's enterprise value is $1,895.7 Mil. Aruba Networks Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2014 was $29.2 Mil. Therefore, Aruba Networks Inc's EV/EBITDA ratio for today is 63.63.

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, Aruba Networks Inc's stock price is $19.99. Aruba Networks Inc's earnings per share for the trailing twelve months (TTM) ended in Jul. 2014 was $-0.27. Therefore, Aruba Networks Inc's P/E Ratio for today is 0.00.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1895.702/29.23
=64.85

Aruba Networks Inc's current Enterprise Value is $1,895.7 Mil.
Aruba Networks Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2014 was 1.404 (Oct. 2013 ) + 3.599 (Jan. 2014 ) + 7.691 (Apr. 2014 ) + 16.536 (Jul. 2014 ) = $29.2 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=19.99/-0.268
=

Aruba Networks Inc's share price for today is $19.99.
Aruba Networks Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jul. 2014 was -0.07 (Oct. 2013 ) + -0.1 (Jan. 2014 ) + -0.06 (Apr. 2014 ) + -0.038 (Jul. 2014 ) = $-0.27.

* 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.

Aruba Networks Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
ev2ebitda 0.000.000.000.000.000.00211.1641.37137.0758.40

Aruba Networks Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
ev2ebitda 87.4041.3749.7854.7460.63137.07495.940.004,240.4358.40
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