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Computer Sciences Corp (NYSE:CSC)
EV/EBITDA
4.66 (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 $9,934 Mil. Computer Sciences Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,130 Mil. Therefore, Computer Sciences Corp's EV/EBITDA ratio for today is 4.66.

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 $64.36. Computer Sciences Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $4.12. Therefore, Computer Sciences Corp's P/E Ratio for today is 15.61.

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)
=9934.024/2130
=4.66

Computer Sciences Corp's current Enterprise Value is $9,934 Mil.
Computer Sciences Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 510 (Dec. 2013 ) + 562 (Mar. 2014 ) + 525 (Jun. 2014 ) + 533 (Sep. 2014 ) = $2,130 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)
=64.36/4.123
=15.61

Computer Sciences Corp's share price for today is $64.36.
Computer Sciences Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.94 (Dec. 2013 ) + 1.163 (Mar. 2014 ) + 0.98 (Jun. 2014 ) + 1.04 (Sep. 2014 ) = $4.12.

* 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda -1.88273.464.154.383.754.314.504.504.594.49
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