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Electro Rent Corp (NAS:ELRC)
EV/EBITDA
3.80 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Electro Rent Corp's enterprise value is $336.5 Mil. Electro Rent Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Aug. 2014 was $88.6 Mil. Therefore, Electro Rent Corp's EV/EBITDA ratio for today is 3.80.

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, Electro Rent Corp's stock price is $14.18. Electro Rent Corp's earnings per share for the trailing twelve months (TTM) ended in Aug. 2014 was $0.81. Therefore, Electro Rent Corp's P/E Ratio for today is 17.50.

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


Definition

Electro Rent Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=336.526/88.575
=3.80

Electro Rent Corp's current Enterprise Value is $336.5 Mil.
Electro Rent Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Aug. 2014 was 23.469 (Nov. 2013 ) + 21.859 (Feb. 2014 ) + 21.62 (May. 2014 ) + 21.627 (Aug. 2014 ) = $88.6 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.

Electro Rent Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=14.18/0.808
=17.55

Electro Rent Corp's share price for today is $14.18.
Electro Rent Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Aug. 2014 was 0.23 (Nov. 2013 ) + 0.19 (Feb. 2014 ) + 0.188 (May. 2014 ) + 0.2 (Aug. 2014 ) = $0.81.

* 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.

Electro Rent Corp Annual Data

May05May06May07May08May09May10May11May12May13May14
ev2ebitda 3.234.954.033.792.494.493.803.544.304.22

Electro Rent Corp Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
ev2ebitda 3.544.333.914.194.304.265.424.644.224.06
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