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GuruFocus has detected 5 Warning Signs with Check Point Software Technologies Ltd $CHKP.
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Check Point Software Technologies Ltd (NAS:CHKP)
EV-to-EBITDA
19.34 (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 $16,766 Mil. Check Point Software Technologies Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $867 Mil. Therefore, Check Point Software Technologies Ltd's EV/EBITDA ratio for today is 19.34.

CHKP' s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.7   Max: 19.37
Current: 19.32

7.7
19.37

During the past 13 years, the highest EV/EBITDA Ratio of Check Point Software Technologies Ltd was 19.37. The lowest was 7.70. And the median was 14.20.

CHKP's EV-to-EBITDA is ranked lower than
68% of the 1758 Companies
in the Global Software - Application industry.

( Industry Median: 12.93 vs. CHKP: 19.32 )

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, Check Point Software Technologies Ltd's stock price is $103.71. Check Point Software Technologies Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $4.20. Therefore, Check Point Software Technologies Ltd's P/E Ratio for today is 24.69.

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)
=16766.103/867.005
=19.34

Check Point Software Technologies Ltd's current Enterprise Value is $16,766 Mil.
Check Point Software Technologies Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 205.867 (Mar. 2016 ) + 205.834 (Jun. 2016 ) + 210.55 (Sep. 2016 ) + 244.754 (Dec. 2016 ) = $867 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=103.71/4.2
=24.69

Check Point Software Technologies Ltd's share price for today is $103.71.
Check Point Software Technologies Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.95 (Mar. 2016 ) + 0.95 (Jun. 2016 ) + 0.99 (Sep. 2016 ) + 1.31 (Dec. 2016 ) = $4.20.

* 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.

Check Point Software Technologies Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 12.287.6413.0714.4013.6310.4814.5416.1615.1814.93

Check Point Software Technologies Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 14.4116.1617.0916.1714.9215.1816.4214.6114.0014.93
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