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Edgewater Technology Inc (NAS:EDGW)
EV/EBITDA
11.87 (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 $69.0 Mil. Edgewater Technology Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $5.8 Mil. Therefore, Edgewater Technology 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, Edgewater Technology Inc's stock price is $7.14. Edgewater Technology Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $0.18. Therefore, Edgewater Technology Inc's P/E Ratio for today is 39.89.

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)
=68.950/5.807
=11.87

Edgewater Technology Inc's current Enterprise Value is $69.0 Mil.
Edgewater Technology Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 3.443 (Jun. 2014 ) + 2.116 (Sep. 2014 ) + 1.426 (Dec. 2014 ) + -1.178 (Mar. 2015 ) = $5.8 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=7.14/0.179
=39.89

Edgewater Technology Inc's share price for today is $7.14.
Edgewater Technology Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 0.13 (Jun. 2014 ) + 0.08 (Sep. 2014 ) + 0.049 (Dec. 2014 ) + -0.08 (Mar. 2015 ) = $0.18.

* 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.

Edgewater Technology Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 12.085.378.06-0.18-11.119.755.126.519.096.85

Edgewater Technology Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 6.5110.318.728.449.097.526.555.476.8510.32
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