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GuruFocus has detected 4 Warning Signs with FormFactor Inc $FORM.
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FormFactor Inc (NAS:FORM)
EV-to-EBITDA
153.44 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, FormFactor Inc's enterprise value is $818.1 Mil. FormFactor Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $5.3 Mil. Therefore, FormFactor Inc's EV/EBITDA ratio for today is 153.44.

During the past 13 years, the highest EV/EBITDA Ratio of FormFactor Inc was 156.80. The lowest was -325.60. And the median was -0.50.

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, FormFactor Inc's stock price is $11.15. FormFactor Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $0.16. Therefore, FormFactor Inc's P/E Ratio for today is 69.69.

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


Definition

FormFactor Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=818.129/5.332
=153.44

FormFactor Inc's current Enterprise Value is $818.1 Mil.
FormFactor Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 5.135 (Dec. 2015 ) + -8.334 (Mar. 2016 ) + -1.475 (Jun. 2016 ) + 10.006 (Sep. 2016 ) = $5.3 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=11.15/0.16
=69.69

FormFactor Inc's share price for today is $11.15.
FormFactor Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was -0.01 (Dec. 2015 ) + -0.24 (Mar. 2016 ) + 0.61 (Jun. 2016 ) + -0.2 (Sep. 2016 ) = $0.16.

* 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.

FormFactor Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 8.94-1.83-5.64-0.600.80-1.65-5.9432.4417.04-57.33

FormFactor Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda -51.1332.4417.4616.0012.0217.0439.32-320.64151.28-57.33
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