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MicroFinancial Inc (NAS:MFI)
EV/EBITDA
8.05 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, MicroFinancial Inc's enterprise value is $205.64 Mil. MicroFinancial Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $25.56 Mil. Therefore, MicroFinancial Inc's EV/EBITDA ratio for today is 8.05.

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, MicroFinancial Inc's stock price is $8.41. MicroFinancial Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.68. Therefore, MicroFinancial Inc's P/E Ratio for today is 12.40.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=205.638/25.555
=8.05

MicroFinancial Inc's current Enterprise Value is $205.64 Mil.
MicroFinancial Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 6.297 (Dec. 2013 ) + 5.844 (Mar. 2014 ) + 6.359 (Jun. 2014 ) + 7.055 (Sep. 2014 ) = $25.56 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.41/0.676
=12.44

MicroFinancial Inc's share price for today is $8.41.
MicroFinancial Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.166 (Dec. 2013 ) + 0.14 (Mar. 2014 ) + 0.17 (Jun. 2014 ) + 0.2 (Sep. 2014 ) = $0.68.

* 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.

MicroFinancial Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda -2.773.012.289.745.078.878.506.977.707.92

MicroFinancial Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 8.348.917.708.157.867.737.927.427.697.91
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