Switch to:
Constant Contact Inc (NAS:CTCT)
EV/EBITDA
11.87 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Constant Contact Inc's enterprise value is $600.2 Mil. Constant Contact Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $50.6 Mil. Therefore, Constant Contact Inc's EV/EBITDA ratio for today is 11.87.

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, Constant Contact Inc's stock price is $24.26. Constant Contact Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $0.57. Therefore, Constant Contact Inc's P/E Ratio for today is 42.64.

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


Definition

Constant Contact Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=600.202/50.561
=11.87

Constant Contact Inc's current Enterprise Value is $600.2 Mil.
Constant Contact Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 14.317 (Sep. 2014 ) + 13.681 (Dec. 2014 ) + 10.353 (Mar. 2015 ) + 12.21 (Jun. 2015 ) = $50.6 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.

Constant Contact Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=24.26/0.569
=42.64

Constant Contact Inc's share price for today is $24.26.
Constant Contact Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.16 (Sep. 2014 ) + 0.189 (Dec. 2014 ) + 0.11 (Mar. 2015 ) + 0.11 (Jun. 2015 ) = $0.57.

* 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.

Constant Contact Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.000.00-160.51242.8350.1854.4722.899.9127.7622.94

Constant Contact Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 9.0811.4619.3427.7618.1622.8417.1322.9422.2114.74
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK