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Coventry Health Care, Inc. (NYSE:CVH)
EV/EBITDA
7.81 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Coventry Health Care, Inc.'s enterprise value is $6,669 Mil. Coventry Health Care, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2013 was $854 Mil. Therefore, Coventry Health Care, Inc.'s EV/EBITDA ratio for today is 7.81.

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, Coventry Health Care, Inc.'s stock price is $0.00. Coventry Health Care, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Mar. 2013 was $3.32. Therefore, Coventry Health Care, Inc.'s P/E Ratio for today is 0.00.

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


Definition

Coventry Health Care, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6668.529/853.569
=7.81

Coventry Health Care, Inc.'s current Enterprise Value is $6,669 Mil.
Coventry Health Care, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2013 was 188.923 (Jun. 2012 ) + 195.796 (Sep. 2012 ) + 215.051 (Dec. 2012 ) + 253.799 (Mar. 2013 ) = $854 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.

Coventry Health Care, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=0.00/3.32
=0.00

Coventry Health Care, Inc.'s share price for today is $0.00.
Coventry Health Care, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2013 was 0.65 (Jun. 2012 ) + 0.78 (Sep. 2012 ) + 0.89 (Dec. 2012 ) + 1 (Mar. 2013 ) = $3.32.

* 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.

Coventry Health Care, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
ev2ebitda 22.9212.0411.717.427.502.674.724.204.416.08

Coventry Health Care, Inc. Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
ev2ebitda 4.204.913.953.454.413.694.976.106.086.52
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