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Health Net Inc (NYSE:HNT)
EV/EBITDA
3.33 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Health Net Inc's enterprise value is $1,204 Mil. Health Net Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $341 Mil. Therefore, Health Net Inc's EV/EBITDA ratio for today is 3.33.

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, Health Net Inc's stock price is $33.80. Health Net Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $2.12. Therefore, Health Net Inc's P/E Ratio for today is 16.10.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1203.504/341.156
=3.53

Health Net Inc's current Enterprise Value is $1,204 Mil.
Health Net Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 99.03 (Mar. 2013 ) + 69.907 (Jun. 2013 ) + 125.955 (Sep. 2013 ) + 46.264 (Dec. 2013 ) = $341 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=33.80/2.115
=15.98

Health Net Inc's share price for today is $33.80.
Health Net Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.62 (Mar. 2013 ) + 0.42 (Jun. 2013 ) + 0.83 (Sep. 2013 ) + 0.245 (Dec. 2013 ) = $2.12.

* 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.

Health Net Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 12.579.216.397.61-1.5713.772.785.403.352.52

Health Net Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 2.195.406.771.652.303.354.014.762.342.52
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