Switch to:
GuruFocus has detected 2 Warning Signs with Finisar Corp $FNSR.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Finisar Corp (NAS:FNSR)
EV/EBITDA
13.59 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Finisar Corp's enterprise value is $2,810 Mil. Finisar Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2016 was $207 Mil. Therefore, Finisar Corp's EV/EBITDA ratio for today is 13.59.

FNSR' s EV/EBITDA Range Over the Past 10 Years
Min: -139.4   Max: 232.8
Current: 14.26

-139.4
232.8

During the past 13 years, the highest EV/EBITDA Ratio of Finisar Corp was 232.80. The lowest was -139.40. And the median was 13.90.

FNSR's EV/EBITDA is ranked lower than
53% of the 370 Companies
in the Global Communication Equipment industry.

( Industry Median: 13.55 vs. FNSR: 14.26 )

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, Finisar Corp's stock price is $28.92. Finisar Corp's earnings per share for the trailing twelve months (TTM) ended in Oct. 2016 was $0.88. Therefore, Finisar Corp's P/E Ratio for today is 32.86.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2809.677/206.726
=13.59

Finisar Corp's current Enterprise Value is $2,810 Mil.
Finisar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2016 was 36.652 (Jan. 2016 ) + 39.204 (Apr. 2016 ) + 52.816 (Jul. 2016 ) + 78.054 (Oct. 2016 ) = $207 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=28.92/0.88
=32.86

Finisar Corp's share price for today is $28.92.
Finisar Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2016 was 0.11 (Jan. 2016 ) + 0.12 (Apr. 2016 ) + 0.22 (Jul. 2016 ) + 0.43 (Oct. 2016 ) = $0.88.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Finisar Corp Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
ev2ebitda 110.60-34.80-2.0448.6915.7712.6516.3112.0114.8110.18

Finisar Corp Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebitda 9.219.3011.8914.8113.646.897.5610.1810.5212.76
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)
FEEDBACK