Switch to:
Electro Rent Corporation (NAS:ELRC)
EV/EBITDA
4.29 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Electro Rent Corporation's enterprise value is $400.1 Mil. Electro Rent Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Feb. 2014 was $93.3 Mil. Therefore, Electro Rent Corporation's EV/EBITDA ratio for today is 4.29.

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 Corporation's stock price is $16.80. Electro Rent Corporation's earnings per share for the trailing twelve months (TTM) ended in Feb. 2014 was $0.91. Therefore, Electro Rent Corporation's P/E Ratio for today is 18.50.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=400.140/93.262
=4.29

Electro Rent Corporation's current Enterprise Value is $400.1 Mil.
Electro Rent Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Feb. 2014 was 24.457 (May. 2013 ) + 23.477 (Aug. 2013 ) + 23.469 (Nov. 2013 ) + 21.859 (Feb. 2014 ) = $93.3 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 Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=16.80/0.907
=18.52

Electro Rent Corporation's share price for today is $16.80.
Electro Rent Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Feb. 2014 was 0.257 (May. 2013 ) + 0.23 (Aug. 2013 ) + 0.23 (Nov. 2013 ) + 0.19 (Feb. 2014 ) = $0.91.

* 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 Corporation Annual Data

May04May05May06May07May08May09May10May11May12May13
ev2ebitda 3.983.234.954.033.792.494.493.803.544.30

Electro Rent Corporation Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
ev2ebitda 4.314.743.544.333.914.194.304.265.420.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide