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Education Management Corp (OTCPK:EDMC)
EV/EBITDA
-3.77 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Education Management Corp's enterprise value is $1,272 Mil. Education Management Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $-337 Mil. Therefore, Education Management Corp's EV/EBITDA ratio for today is -3.77.

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, Education Management Corp's stock price is $0.32. Education Management Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $-5.27. Therefore, Education Management Corp'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

Education Management Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1272.384/-336.745
=-3.78

Education Management Corp's current Enterprise Value is $1,272 Mil.
Education Management Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 50.523 (Sep. 2013 ) + 67.825 (Dec. 2013 ) + -431.741 (Mar. 2014 ) + -23.352 (Jun. 2014 ) = $-337 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.

Education Management Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=0.32/-5.271
=

Education Management Corp's share price for today is $0.32.
Education Management Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was -0.08 (Sep. 2013 ) + 0.01 (Dec. 2013 ) + -3.71 (Mar. 2014 ) + -1.491 (Jun. 2014 ) = $-5.27.

* 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.

Education Management Corp Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda 0.000.000.000.000.006.146.79-2.9431.00-4.32

Education Management Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 5.58-2.94-1.99-2.09-1.3431.0038.27712.49-7.02-4.32
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