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Fifth Street Finance Corporation (NAS:FSC)
EV/EBITDA
15.92 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Fifth Street Finance Corporation's enterprise value is $2,269.2 Mil. Fifth Street Finance Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $142.6 Mil. Therefore, Fifth Street Finance Corporation's EV/EBITDA ratio for today is 15.92.

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, Fifth Street Finance Corporation's stock price is $7.09. Fifth Street Finance Corporation's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.78. Therefore, Fifth Street Finance Corporation's P/E Ratio for today is 9.09.

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


Definition

Fifth Street Finance Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2269.245/142.575
=15.92

Fifth Street Finance Corporation's current Enterprise Value is $2,269.2 Mil.
Fifth Street Finance Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 36.218 (Dec. 2013 ) + 34.233 (Mar. 2014 ) + 34.665 (Jun. 2014 ) + 37.459 (Sep. 2014 ) = $142.6 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.

Fifth Street Finance Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=7.09/0.78
=9.09

Fifth Street Finance Corporation's share price for today is $7.09.
Fifth Street Finance Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.24 (Dec. 2013 ) + 0.21 (Mar. 2014 ) + 0.15 (Jun. 2014 ) + 0.18 (Sep. 2014 ) = $0.78.

* 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.

Fifth Street Finance Corporation Annual Data

Sep08Sep09Sep10Sep11Sep12Sep13Sep14
ev2ebitda 0.000.000.000.00-48.9712.3415.9415.6916.8116.43

Fifth Street Finance Corporation Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 14.1315.6917.7015.0313.6416.8118.4220.4215.6116.43
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