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GuruFocus has detected 2 Warning Signs with Finisar Corp $FNSR.
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Finisar Corp (NAS:FNSR)
EV-to-EBITDA
10.71 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Finisar Corp's enterprise value is $2,671 Mil. Finisar Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2017 was $249 Mil. Therefore, Finisar Corp's EV/EBITDA ratio for today is 10.71.

FNSR' s EV-to-EBITDA Range Over the Past 10 Years
Min: -139.4   Max: 232.8
Current: 10.72

-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 13.70.

FNSR's EV-to-EBITDA is ranked higher than
56% of the 462 Companies
in the Global Communication Equipment industry.

( Industry Median: 11.91 vs. FNSR: 10.72 )

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 $28.60. Finisar Corp's earnings per share for the trailing twelve months (TTM) ended in Jan. 2017 was $1.17. Therefore, Finisar Corp's P/E Ratio for today is 24.44.

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)
=2671.336/249.313
=10.71

Finisar Corp's current Enterprise Value is $2,671 Mil.
Finisar Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 39.204 (Apr. 2016 ) + 52.816 (Jul. 2016 ) + 78.054 (Oct. 2016 ) + 79.239 (Jan. 2017 ) = $249 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)
=28.60/1.17
=24.44

Finisar Corp's share price for today is $28.60.
Finisar Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2017 was 0.12 (Apr. 2016 ) + 0.22 (Jul. 2016 ) + 0.43 (Oct. 2016 ) + 0.4 (Jan. 2017 ) = $1.17.

* 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

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebitda 9.3011.8914.8113.646.897.5610.1810.5212.7611.14
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