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Computer Sciences Corp (NYSE:CSC)
EV/EBITDA
4.65 (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 $9,871 Mil. Computer Sciences Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $2,070 Mil. Therefore, Computer Sciences Corp's EV/EBITDA ratio for today is 4.65.

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 $64.85. Computer Sciences Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $4.46. Therefore, Computer Sciences Corp's P/E Ratio for today is 14.20.

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)
=9871.270/2070
=4.77

Computer Sciences Corp's current Enterprise Value is $9,871 Mil.
Computer Sciences Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 500 (Jun. 2013 ) + 498 (Sep. 2013 ) + 510 (Dec. 2013 ) + 562 (Mar. 2014 ) = $2,070 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)
=64.85/4.463
=14.53

Computer Sciences Corp's share price for today is $64.85.
Computer Sciences Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.02 (Jun. 2013 ) + 1.34 (Sep. 2013 ) + 0.94 (Dec. 2013 ) + 1.163 (Mar. 2014 ) = $4.46.

* 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 4.414.984.883.873.033.853.660.003.174.51

Computer Sciences Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 0.000.000.00312.534.163.172.983.433.624.51
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