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Meritage Homes Corporation (NYSE:MTH)
EV/EBITDA
10.99 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Meritage Homes Corporation's enterprise value is $2,209 Mil. Meritage Homes Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $203 Mil. Therefore, Meritage Homes Corporation's EV/EBITDA ratio for today is 10.99.

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, Meritage Homes Corporation's stock price is $42.30. Meritage Homes Corporation's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.24. Therefore, Meritage Homes Corporation's P/E Ratio for today is 13.20.

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


Definition

Meritage Homes Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2208.897/202.698
=10.90

Meritage Homes Corporation's current Enterprise Value is $2,209 Mil.
Meritage Homes Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 23.761 (Mar. 2013 ) + 45.555 (Jun. 2013 ) + 62.759 (Sep. 2013 ) + 70.623 (Dec. 2013 ) = $203 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.

Meritage Homes Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=42.30/3.235
=13.08

Meritage Homes Corporation's share price for today is $42.30.
Meritage Homes Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.32 (Mar. 2013 ) + 0.74 (Jun. 2013 ) + 0.99 (Sep. 2013 ) + 1.185 (Dec. 2013 ) = $3.24.

* 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.

Meritage Homes Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 7.504.785.410.000.007.3020.7360.3929.4111.33

Meritage Homes Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 30.7960.3966.9178.4861.8629.4126.7517.9012.8411.33
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