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Education Management Corporation (NAS:EDMC)
EV/EBITDA
-66.98 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Education Management Corporation's enterprise value is $1,745 Mil. Education Management Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $-25 Mil. Therefore, Education Management Corporation's EV/EBITDA ratio for today is -66.98.

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 Corporation's stock price is $4.14. Education Management Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $-2.37. Therefore, Education Management Corporation'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 Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1744.809/-25.318
=

Education Management Corporation's current Enterprise Value is $1,745 Mil.
Education Management Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was -206.966 (Mar. 2013 ) + 63.3 (Jun. 2013 ) + 50.523 (Sep. 2013 ) + 67.825 (Dec. 2013 ) = $-25 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 Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=4.14/-2.366
=

Education Management Corporation's share price for today is $4.14.
Education Management Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was -2.28 (Mar. 2013 ) + -0.016 (Jun. 2013 ) + -0.08 (Sep. 2013 ) + 0.01 (Dec. 2013 ) = $-2.37.

* 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 Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev2ebitda 0.000.000.000.000.000.007.436.610.0057.71

Education Management Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 4.587.9787.530.000.000.000.0057.7174.860.00
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