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Cerner Corporation (NAS:CERN)
EV/EBITDA
20.32 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Cerner Corporation's enterprise value is $17,853 Mil. Cerner Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $860 Mil. Therefore, Cerner Corporation's EV/EBITDA ratio for today is 20.32.

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, Cerner Corporation's stock price is $54.27. Cerner Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.13. Therefore, Cerner Corporation's P/E Ratio for today is 48.20.

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


Definition

Cerner Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=17852.653/859.962
=20.76

Cerner Corporation's current Enterprise Value is $17,853 Mil.
Cerner Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 220.054 (Mar. 2013 ) + 229.347 (Jun. 2013 ) + 236.466 (Sep. 2013 ) + 174.095 (Dec. 2013 ) = $860 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.

Cerner Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=54.27/1.131
=47.98

Cerner Corporation's share price for today is $54.27.
Cerner Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.31 (Mar. 2013 ) + 0.32 (Jun. 2013 ) + 0.33 (Sep. 2013 ) + 0.171 (Dec. 2013 ) = $1.13.

* 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.

Cerner Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.0113.3411.3211.816.3812.8213.3614.2415.2521.39

Cerner Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 17.0314.2416.9817.8016.0515.2518.0717.5318.5921.39
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