Switch to:
Five Star Quality Care Inc (NYSE:FVE)
EV/EBITDA
11.17 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Five Star Quality Care Inc's enterprise value is $228 Mil. Five Star Quality Care Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $20 Mil. Therefore, Five Star Quality Care Inc's EV/EBITDA ratio for today is 11.17.

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, Five Star Quality Care Inc's stock price is $4.12. Five Star Quality Care Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $-0.35. Therefore, Five Star Quality Care Inc's P/E Ratio for today is .

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


Definition

Five Star Quality Care Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=228.150/20.419
=11.17

Five Star Quality Care Inc's current Enterprise Value is $228 Mil.
Five Star Quality Care Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 6.158 (Dec. 2013 ) + 0.565 (Mar. 2014 ) + 8.008 (Jun. 2014 ) + 5.688 (Sep. 2014 ) = $20 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.

Five Star Quality Care Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=4.12/-0.345
=

Five Star Quality Care Inc's share price for today is $4.12.
Five Star Quality Care Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.105 (Dec. 2013 ) + -0.14 (Mar. 2014 ) + -0.04 (Jun. 2014 ) + -0.06 (Sep. 2014 ) = $-0.35.

* 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.

Five Star Quality Care Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.48-2.87-4.446.308.082.326.285.445.568.04

Five Star Quality Care Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 4.786.145.567.236.836.358.040.000.0010.46
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)
Free 7-day Trial
FEEDBACK