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Meritage Homes Corp (NYSE:MTH)
EV/EBITDA
9.84 (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 $2,248 Mil. Meritage Homes Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $224 Mil. Therefore, Meritage Homes Corp's EV/EBITDA ratio for today is 9.84.

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 $42.58. Meritage Homes Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $3.54. Therefore, Meritage Homes Corp's P/E Ratio for today is 12.20.

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)
=2247.894/223.921
=10.04

Meritage Homes Corp's current Enterprise Value is $2,248 Mil.
Meritage Homes Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 45.555 (Jun. 2013 ) + 62.759 (Sep. 2013 ) + 70.623 (Dec. 2013 ) + 44.984 (Mar. 2014 ) = $224 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)
=42.58/3.535
=12.05

Meritage Homes Corp's share price for today is $42.58.
Meritage Homes Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 0.74 (Jun. 2013 ) + 0.99 (Sep. 2013 ) + 1.185 (Dec. 2013 ) + 0.62 (Mar. 2014 ) = $3.54.

* 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 7.504.785.410.000.007.3020.7360.3929.4111.33

Meritage Homes Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 60.3966.9178.4861.8629.4126.7517.9012.8411.339.91
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