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GuruFocus has detected 2 Warning Signs with Groupon Inc $GRPN.
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Groupon Inc (NAS:GRPN)
EV-to-EBITDA
-47.70 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Groupon Inc's enterprise value is $1,551 Mil. Groupon Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $-33 Mil. Therefore, Groupon Inc's EV/EBITDA ratio for today is -47.70.

GRPN' s EV-to-EBITDA Range Over the Past 10 Years
Min: -169.1   Max: 1773.4
Current: -47.7

-169.1
1773.4

During the past 8 years, the highest EV/EBITDA Ratio of Groupon Inc was 1773.40. The lowest was -169.10. And the median was 36.30.

GRPN's EV-to-EBITDA is ranked lower than
99.99% of the 344 Companies
in the Global Internet Content & Information industry.

( Industry Median: 17.12 vs. GRPN: -47.70 )

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, Groupon Inc's stock price is $3.89. Groupon Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $-0.34. Therefore, Groupon 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

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1551.049/-32.518
=-47.70

Groupon Inc's current Enterprise Value is $1,551 Mil.
Groupon Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was -8.201 (Mar. 2016 ) + -14.508 (Jun. 2016 ) + 5.318 (Sep. 2016 ) + -15.127 (Dec. 2016 ) = $-33 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=3.89/-0.34
=

Groupon Inc's share price for today is $3.89.
Groupon Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -0.08 (Mar. 2016 ) + -0.1 (Jun. 2016 ) + -0.07 (Sep. 2016 ) + -0.09 (Dec. 2016 ) = $-0.34.

* 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.

Groupon Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 0.000.000.000.00-54.7819.0393.6040.5836.92-37.26

Groupon Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 273.6440.5835.5220.8724.3936.921,367.42-33.25289.32-37.26
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