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GuruFocus has detected 7 Warning Signs with Mercury Systems Inc $MRCY.
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Mercury Systems Inc (NAS:MRCY)
EV-to-EBITDA
36.11 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mercury Systems Inc's enterprise value is $1,963.5 Mil. Mercury Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $54.4 Mil. Therefore, Mercury Systems Inc's EV/EBITDA ratio for today is 36.11.

MRCY' s EV-to-EBITDA Range Over the Past 10 Years
Min: -164.6   Max: 329.3
Current: 36.11

-164.6
329.3

During the past 13 years, the highest EV/EBITDA Ratio of Mercury Systems Inc was 329.30. The lowest was -164.60. And the median was 9.40.

MRCY's EV-to-EBITDA is ranked lower than
85% of the 1480 Companies
in the Global Computer Systems industry.

( Industry Median: 11.01 vs. MRCY: 36.11 )

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, Mercury Systems Inc's stock price is $37.94. Mercury Systems Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.59. Therefore, Mercury Systems Inc's P/E Ratio for today is 64.31.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1963.505/54.376
=36.11

Mercury Systems Inc's current Enterprise Value is $1,963.5 Mil.
Mercury Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 10.321 (Mar. 2016 ) + 15.616 (Jun. 2016 ) + 11.702 (Sep. 2016 ) + 16.737 (Dec. 2016 ) = $54.4 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=37.94/0.59
=64.31

Mercury Systems Inc's share price for today is $37.94.
Mercury Systems Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.13 (Mar. 2016 ) + 0.23 (Jun. 2016 ) + 0.1 (Sep. 2016 ) + 0.13 (Dec. 2016 ) = $0.59.

* 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.

Mercury Systems Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
ev2ebitda -18.109.358.468.5912.036.24-21.3355.3713.6026.42

Mercury Systems Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 32.2826.9820.1113.6014.1515.5816.2726.4223.4424.47
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