Switch to:
Netflix Inc (NAS:NFLX)
EV/EBITDA
14.68 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Netflix Inc's enterprise value is $51,015 Mil. Netflix Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $3,475 Mil. Therefore, Netflix Inc's EV/EBITDA ratio for today is 14.68.

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, Netflix Inc's stock price is $121.15. Netflix Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $0.44. Therefore, Netflix Inc's P/E Ratio for today is 272.86.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=51014.842/3474.602
=14.68

Netflix Inc's current Enterprise Value is $51,015 Mil.
Netflix Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 829.803 (Sep. 2014 ) + 826.772 (Dec. 2014 ) + 883.326 (Mar. 2015 ) + 934.701 (Jun. 2015 ) = $3,475 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=121.15/0.444
=272.86

Netflix Inc's share price for today is $121.15.
Netflix Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.137 (Sep. 2014 ) + 0.193 (Dec. 2014 ) + 0.054 (Mar. 2015 ) + 0.06 (Jun. 2015 ) = $0.44.

* 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.

Netflix Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 87.7854.3537.1631.9444.99103.5121.7120.0862.5245.14

Netflix Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 38.8341.4756.1662.5555.4664.7062.2945.1452.7880.43
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK