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Education Management Corp (OTCPK:EDMC)
EV/EBITDA
-3.69 (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 $1,242 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 -3.69.

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 $0.07. Education Management Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $-5.29. Therefore, Education Management Corp'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

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1241.634/-336.746
=-3.69

Education Management Corp's current Enterprise Value is $1,242 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Education Management Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $-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)
=0.07/-5.29
=

Education Management Corp's share price for today is $0.07.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Education Management Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $-5.29.

* 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 0.000.000.000.000.006.766.70-1.7931.00-4.29

Education Management Corp Semi-Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
ev2ebitda 0.000.000.000.000.006.766.70-1.7931.00-4.29
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