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Health Net Inc (NYSE:HNT)
EV/EBITDA
6.69 (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 $1,749 Mil. Health Net Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2015 was $262 Mil. Therefore, Health Net Inc's EV/EBITDA ratio for today is 6.69.

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 $60.84. Health Net Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2015 was $1.82. Therefore, Health Net Inc's P/E Ratio for today is 33.39.

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)
=1748.774/261.575
=6.69

Health Net Inc's current Enterprise Value is $1,749 Mil.
Health Net Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2015 was 116.269 (Jun. 2014 ) + 37.033 (Sep. 2014 ) + 28.208 (Dec. 2014 ) + 80.065 (Mar. 2015 ) = $262 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)
=60.84/1.822
=33.39

Health Net Inc's share price for today is $60.84.
Health Net Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2015 was 1.49 (Jun. 2014 ) + -0.11 (Sep. 2014 ) + 0.062 (Dec. 2014 ) + 0.38 (Mar. 2015 ) = $1.82.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 9.216.397.61-1.5713.772.785.403.352.527.70

Health Net Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
ev2ebitda 3.354.014.762.352.522.504.254.967.706.87
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