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Fabrinet (NYSE:FN)
EV/EBITDA
3.00 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Fabrinet's enterprise value is $329.7 Mil. Fabrinet's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $108.0 Mil. Therefore, Fabrinet's EV/EBITDA ratio for today is 3.00.

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, Fabrinet's stock price is $15.35. Fabrinet's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $2.72. Therefore, Fabrinet's P/E Ratio for today is 5.60.

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


Definition

Fabrinet's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=329.669/107.967
=3.05

Fabrinet's current Enterprise Value is $329.7 Mil.
Fabrinet's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 18.111 (Jun. 2013 ) + 22.721 (Sep. 2013 ) + 15.898 (Dec. 2013 ) + 51.237 (Mar. 2014 ) = $108.0 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.

Fabrinet's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=15.35/2.723
=5.64

Fabrinet's share price for today is $15.35.
Fabrinet's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.433 (Jun. 2013 ) + 0.55 (Sep. 2013 ) + 0.41 (Dec. 2013 ) + 1.33 (Mar. 2014 ) = $2.72.

* 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.

Fabrinet Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
ev2ebitda 0.000.000.000.000.000.005.229.170.004.38

Fabrinet Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 14.960.000.000.0060.155.064.385.196.924.79
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