Switch to:
Aspen Technology Inc (NAS:AZPN)
EV/EBITDA
19.14 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Aspen Technology Inc's enterprise value is $2,956.2 Mil. Aspen Technology Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $154.5 Mil. Therefore, Aspen Technology Inc's EV/EBITDA ratio for today is 19.14.

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, Aspen Technology Inc's stock price is $35.61. Aspen Technology Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.08. Therefore, Aspen Technology Inc's P/E Ratio for today is 33.06.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2956.195/154.46
=19.14

Aspen Technology Inc's current Enterprise Value is $2,956.2 Mil.
Aspen Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 37.165 (Dec. 2013 ) + 32.581 (Mar. 2014 ) + 38.405 (Jun. 2014 ) + 46.309 (Sep. 2014 ) = $154.5 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=35.61/1.077
=33.06

Aspen Technology Inc's share price for today is $35.61.
Aspen Technology Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.25 (Dec. 2013 ) + 0.22 (Mar. 2014 ) + 0.287 (Jun. 2014 ) + 0.32 (Sep. 2014 ) = $1.08.

* 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.

Aspen Technology Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda -4.099.5713.7321.3310.31-11.15-44.94-354.3839.7529.66

Aspen Technology Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda -354.38116.2490.3463.5739.7538.9737.4332.7029.6620.74
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)
Free 7-day Trial
FEEDBACK