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GuruFocus has detected 1 Warning Sign with Edgewater Technology Inc $EDGW.
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Edgewater Technology Inc (NAS:EDGW)
EV-to-EBITDA
10.07 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Edgewater Technology Inc's enterprise value is $87.9 Mil. Edgewater Technology Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $8.7 Mil. Therefore, Edgewater Technology Inc's EV/EBITDA ratio for today is 10.07.

EDGW' s EV-to-EBITDA Range Over the Past 10 Years
Min: -16.7   Max: 78.7
Current: 10.1

-16.7
78.7

During the past 13 years, the highest EV/EBITDA Ratio of Edgewater Technology Inc was 78.70. The lowest was -16.70. And the median was 9.00.

EDGW's EV-to-EBITDA is ranked higher than
65% of the 1758 Companies
in the Global Information Technology Services industry.

( Industry Median: 12.93 vs. EDGW: 10.10 )

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, Edgewater Technology Inc's stock price is $7.69. Edgewater Technology Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $-0.25. Therefore, Edgewater Technology Inc's P/E Ratio for today is .

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


Definition

Edgewater Technology Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=87.863/8.725
=10.07

Edgewater Technology Inc's current Enterprise Value is $87.9 Mil.
Edgewater Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 0.421 (Mar. 2016 ) + 4.008 (Jun. 2016 ) + 1.737 (Sep. 2016 ) + 2.559 (Dec. 2016 ) = $8.7 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Edgewater Technology Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=7.69/-0.247
=

Edgewater Technology Inc's share price for today is $7.69.
Edgewater Technology Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.06 (Mar. 2016 ) + 0.09 (Jun. 2016 ) + 0.003 (Sep. 2016 ) + -0.28 (Dec. 2016 ) = $-0.25.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Edgewater Technology Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 8.84-0.19-11.219.835.136.409.096.9127.599.38

Edgewater Technology Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 5.476.9110.3215.8914.0427.5918.7214.2415.939.38
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