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Aruba Networks Inc (NAS:ARUN)
EV/EBITDA
38.21 (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 $1,731.3 Mil. Aruba Networks Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $45.3 Mil. Therefore, Aruba Networks Inc's EV/EBITDA ratio for today is 38.21.

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 $18.71. Aruba Networks Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $-0.18. 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)
=1731.304/45.313
=38.21

Aruba Networks Inc's current Enterprise Value is $1,731.3 Mil.
Aruba Networks Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 3.599 (Jan. 2014 ) + 7.691 (Apr. 2014 ) + 16.536 (Jul. 2014 ) + 17.487 (Oct. 2014 ) = $45.3 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)
=18.71/-0.18
=

Aruba Networks Inc's share price for today is $18.71.
Aruba Networks Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was -0.1 (Jan. 2014 ) + -0.06 (Apr. 2014 ) + -0.04 (Jul. 2014 ) + 0.02 (Oct. 2014 ) = $-0.18.

* 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 0.000.00-87.00-26.09-50.01-61.51211.1841.37137.0757.66

Aruba Networks Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 41.3749.7854.7460.63137.07490.70-369.83-1,991.6557.6643.60
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