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Finisar Corp (NAS:FNSR)
EV/EBITDA
10.79 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Finisar Corp's enterprise value is $1,681 Mil. Finisar Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $156 Mil. Therefore, Finisar Corp's EV/EBITDA ratio for today is 10.79.

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 $21.33. Finisar Corp's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $0.56. Therefore, Finisar Corp's P/E Ratio for today is 38.02.

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)
=1680.510/155.678
=10.79

Finisar Corp's current Enterprise Value is $1,681 Mil.
Finisar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 49.244 (Jan. 2014 ) + 49.436 (Apr. 2014 ) + 40.989 (Jul. 2014 ) + 16.009 (Oct. 2014 ) = $156 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=21.33/0.561
=38.02

Finisar Corp's share price for today is $21.33.
Finisar Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.26 (Jan. 2014 ) + 0.271 (Apr. 2014 ) + 0.14 (Jul. 2014 ) + -0.11 (Oct. 2014 ) = $0.56.

* 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.

Finisar Corp Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev2ebitda -12.3736.10110.61-34.82-2.0448.6915.7712.6516.3112.01

Finisar Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 10.8310.1316.4816.3117.3115.7212.6912.019.209.30
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