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Computer Sciences Corp (NYSE:CSC)
EV/EBITDA
6.52 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Computer Sciences Corp's enterprise value is $9,633 Mil. Computer Sciences Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $1,477 Mil. Therefore, Computer Sciences Corp's EV/EBITDA ratio for today is 6.52.

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, Computer Sciences Corp's stock price is $65.77. Computer Sciences Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $0.95. Therefore, Computer Sciences Corp's P/E Ratio for today is 69.01.

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


Definition

Computer Sciences Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=9632.633/1477
=6.52

Computer Sciences Corp's current Enterprise Value is $9,633 Mil.
Computer Sciences Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 562 (Mar. 2014 ) + 525 (Jun. 2014 ) + 533 (Sep. 2014 ) + -143 (Dec. 2014 ) = $1,477 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.

Computer Sciences Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=65.77/0.953
=69.01

Computer Sciences Corp's share price for today is $65.77.
Computer Sciences Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 1.163 (Mar. 2014 ) + 0.98 (Jun. 2014 ) + 1.04 (Sep. 2014 ) + -2.23 (Dec. 2014 ) = $0.95.

* 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.

Computer Sciences Corp Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebitda 4.414.964.813.823.033.853.66-2.154.384.50

Computer Sciences Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 273.464.154.383.754.314.504.504.614.456.24
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