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EarthLink Holdings Corp (NAS:ELNK)
EV/EBITDA
5.83 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, EarthLink Holdings Corp's enterprise value is $969 Mil. EarthLink Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $166 Mil. Therefore, EarthLink Holdings Corp's EV/EBITDA ratio for today is 5.83.

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, EarthLink Holdings Corp's stock price is $4.79. EarthLink Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $-0.71. Therefore, EarthLink Holdings 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

EarthLink Holdings Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=968.962/166.138
=5.83

EarthLink Holdings Corp's current Enterprise Value is $969 Mil.
EarthLink Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 34.764 (Mar. 2014 ) + 38.266 (Jun. 2014 ) + 54.392 (Sep. 2014 ) + 38.716 (Dec. 2014 ) = $166 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.

EarthLink Holdings Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=4.79/-0.71
=

EarthLink Holdings Corp's share price for today is $4.79.
EarthLink Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was -0.26 (Mar. 2014 ) + -0.21 (Jun. 2014 ) + -0.02 (Sep. 2014 ) + -0.22 (Dec. 2014 ) = $-0.71.

* 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.

EarthLink Holdings Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 5.066.207.072.221.965.103.824.25-12.295.55

EarthLink Holdings Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 4.104.25-37.17-27.72-17.72-12.295.365.845.115.55
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