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Capella Education Co (NAS:CPLA)
EV/EBITDA
8.11 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Capella Education Co's enterprise value is $662.2 Mil. Capella Education Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $82.2 Mil. Therefore, Capella Education Co's EV/EBITDA ratio for today is 8.11.

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, Capella Education Co's stock price is $63.96. Capella Education Co's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $2.69. Therefore, Capella Education Co's P/E Ratio for today is 23.80.

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


Definition

Capella Education Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=662.217/82.181
=8.06

Capella Education Co's current Enterprise Value is $662.2 Mil.
Capella Education Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 16.631 (Sep. 2013 ) + 22.887 (Dec. 2013 ) + 21.311 (Mar. 2014 ) + 21.352 (Jun. 2014 ) = $82.2 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.

Capella Education Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=63.96/2.689
=23.79

Capella Education Co's share price for today is $63.96.
Capella Education Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.48 (Sep. 2013 ) + 0.789 (Dec. 2013 ) + 0.7 (Mar. 2014 ) + 0.72 (Jun. 2014 ) = $2.69.

* 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.

Capella Education Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.0011.9824.7716.3513.897.863.582.647.94

Capella Education Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 3.553.453.622.643.014.396.437.947.750.00
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