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Educational Development Corp (NAS:EDUC)
EV/EBITDA
12.03 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Educational Development Corp's enterprise value is $19.84 Mil. Educational Development Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2014 was $1.65 Mil. Therefore, Educational Development Corp's EV/EBITDA ratio for today is 12.03.

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, Educational Development Corp's stock price is $4.90. Educational Development Corp's earnings per share for the trailing twelve months (TTM) ended in May. 2014 was $0.13. Therefore, Educational Development Corp's P/E Ratio for today is 37.40.

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


Definition

Educational Development Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=19.843/1.65
=12.03

Educational Development Corp's current Enterprise Value is $19.84 Mil.
Educational Development Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2014 was 0.084 (Aug. 2013 ) + 0.921 (Nov. 2013 ) + 0.261 (Feb. 2014 ) + 0.384 (May. 2014 ) = $1.65 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.

Educational Development Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=4.90/0.131
=37.40

Educational Development Corp's share price for today is $4.90.
Educational Development Corp's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2014 was 0.01 (Aug. 2013 ) + 0.14 (Nov. 2013 ) + -0.079 (Feb. 2014 ) + 0.06 (May. 2014 ) = $0.13.

* 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.

Educational Development Corp Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
ev2ebitda 9.807.576.875.233.577.4012.578.2012.1210.41

Educational Development Corp Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
ev2ebitda 8.206.826.337.2912.1216.0417.6414.8310.419.41
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