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Check Point Software Technologies Ltd (NAS:CHKP)
EV/EBITDA
14.26 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Check Point Software Technologies Ltd's enterprise value is $11,246 Mil. Check Point Software Technologies Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $780 Mil. Therefore, Check Point Software Technologies Ltd's EV/EBITDA ratio for today is 14.26.

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, Check Point Software Technologies Ltd's stock price is $64.77. Check Point Software Technologies Ltd's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $3.33. Therefore, Check Point Software Technologies Ltd's P/E Ratio for today is 19.50.

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


Definition

Check Point Software Technologies Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11245.768/779.751
=14.42

Check Point Software Technologies Ltd's current Enterprise Value is $11,246 Mil.
Check Point Software Technologies Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 186.197 (Jun. 2013 ) + 189.358 (Sep. 2013 ) + 216.972 (Dec. 2013 ) + 187.224 (Mar. 2014 ) = $780 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.

Check Point Software Technologies Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=64.77/3.33
=19.45

Check Point Software Technologies Ltd's share price for today is $64.77.
Check Point Software Technologies Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.76 (Jun. 2013 ) + 0.8 (Sep. 2013 ) + 0.99 (Dec. 2013 ) + 0.78 (Mar. 2014 ) = $3.33.

* 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.

Check Point Software Technologies Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 17.9510.0613.2712.287.6413.0714.4014.5610.4814.54

Check Point Software Technologies Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 14.5616.4712.0510.7910.4810.2911.1312.8114.5415.43
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