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Meritage Homes Corp (NYSE:MTH)
EV/EBITDA
9.75 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Meritage Homes Corp's enterprise value is $2,197 Mil. Meritage Homes Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $225 Mil. Therefore, Meritage Homes Corp's EV/EBITDA ratio for today is 9.75.

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 Corp's stock price is $35.01. Meritage Homes Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $3.45. Therefore, Meritage Homes Corp's P/E Ratio for today is 10.16.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2197.041/225.37
=9.75

Meritage Homes Corp's current Enterprise Value is $2,197 Mil.
Meritage Homes Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 70.623 (Dec. 2013 ) + 44.984 (Mar. 2014 ) + 59.301 (Jun. 2014 ) + 50.462 (Sep. 2014 ) = $225 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 Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=35.01/3.445
=10.16

Meritage Homes Corp's share price for today is $35.01.
Meritage Homes Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 1.185 (Dec. 2013 ) + 0.62 (Mar. 2014 ) + 0.85 (Jun. 2014 ) + 0.79 (Sep. 2014 ) = $3.45.

* 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 Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 7.504.785.41-2.36-3.37-7.7220.7360.3929.4111.33

Meritage Homes Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 78.4861.8629.4126.7517.9012.8411.339.929.569.95
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