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Guidewire Software Inc (NYSE:GWRE)
EV/EBITDA
77.44 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Guidewire Software Inc's enterprise value is $3,086.4 Mil. Guidewire Software Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $39.9 Mil. Therefore, Guidewire Software Inc's EV/EBITDA ratio for today is 77.44.

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, Guidewire Software Inc's stock price is $51.54. Guidewire Software Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $0.27. Therefore, Guidewire Software Inc's P/E Ratio for today is 194.49.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=3086.365/39.857
=77.44

Guidewire Software Inc's current Enterprise Value is $3,086.4 Mil.
Guidewire Software Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was -0.671 (Jan. 2014 ) + -1.628 (Apr. 2014 ) + 44.021 (Jul. 2014 ) + -1.865 (Oct. 2014 ) = $39.9 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=51.54/0.265
=194.49

Guidewire Software Inc's share price for today is $51.54.
Guidewire Software Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was -0.01 (Jan. 2014 ) + -0.02 (Apr. 2014 ) + 0.335 (Jul. 2014 ) + -0.04 (Oct. 2014 ) = $0.27.

* 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.

Guidewire Software Inc Annual Data

Jul09Jul10Jul11Jul12Jul13Jul14
ev2ebitda 0.000.000.000.000.000.000.0044.4668.7980.02

Guidewire Software Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 44.4680.6990.98217.3668.79127.57175.04124.1580.0274.40
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