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Aruba Networks Inc (NAS:ARUN)
EV/EBITDA
33.72 (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 $2,381.1 Mil. Aruba Networks Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2015 was $70.6 Mil. Therefore, Aruba Networks Inc's EV/EBITDA ratio for today is 33.72.

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 $24.67. Aruba Networks Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2015 was $-0.03. Therefore, Aruba Networks 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

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2381.128/70.622
=33.72

Aruba Networks Inc's current Enterprise Value is $2,381.1 Mil.
Aruba Networks Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2015 was 7.691 (Apr. 2014 ) + 16.536 (Jul. 2014 ) + 17.487 (Oct. 2014 ) + 28.908 (Jan. 2015 ) = $70.6 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)
=24.67/-0.028
=

Aruba Networks Inc's share price for today is $24.67.
Aruba Networks Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2015 was -0.06 (Apr. 2014 ) + -0.038 (Jul. 2014 ) + 0.02 (Oct. 2014 ) + 0.05 (Jan. 2015 ) = $-0.03.

* 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 0.000.00-80.61-26.09-45.99-61.51211.1841.37137.0755.97

Aruba Networks Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebitda 49.7854.7460.63137.07490.70-369.83-1,991.6555.9745.0021.07
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