Switch to:
GuruFocus has detected 3 Warning Signs with athenahealth Inc $ATHN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
athenahealth Inc (NAS:ATHN)
EV-to-EBITDA
27.68 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, athenahealth Inc's enterprise value is $4,695 Mil. athenahealth Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $170 Mil. Therefore, athenahealth Inc's EV/EBITDA ratio for today is 27.68.

ATHN' s EV-to-EBITDA Range Over the Past 10 Years
Min: 23.5   Max: 112.1
Current: 27.67

23.5
112.1

During the past 13 years, the highest EV/EBITDA Ratio of athenahealth Inc was 112.10. The lowest was 23.50. And the median was 48.00.

ATHN's EV-to-EBITDA is ranked lower than
77% of the 1910 Companies
in the Global Health Information Services industry.

( Industry Median: 13.76 vs. ATHN: 27.67 )

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, athenahealth Inc's stock price is $119.81. athenahealth Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.52. Therefore, athenahealth Inc's P/E Ratio for today is 230.40.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4694.968/169.6
=27.68

athenahealth Inc's current Enterprise Value is $4,695 Mil.
athenahealth Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 33.421 (Mar. 2016 ) + 32.135 (Jun. 2016 ) + 52.699 (Sep. 2016 ) + 51.345 (Dec. 2016 ) = $170 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=119.81/0.52
=230.40

athenahealth Inc's share price for today is $119.81.
athenahealth Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.02 (Mar. 2016 ) + -0.05 (Jun. 2016 ) + 0.35 (Sep. 2016 ) + 0.24 (Dec. 2016 ) = $0.52.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

athenahealth Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 109.8576.1252.8335.7931.0038.4276.1659.5245.0425.32

athenahealth Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 55.0559.5248.3437.1337.4245.0435.0138.1832.6825.32
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK