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GuruFocus has detected 5 Warning Signs with Overstock.com Inc $OSTK.
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Overstock.com Inc (NAS:OSTK)
EV-to-EBITDA
7.19 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Overstock.com Inc's enterprise value is $324 Mil. Overstock.com Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $45 Mil. Therefore, Overstock.com Inc's EV/EBITDA ratio for today is 7.19.

OSTK' s EV-to-EBITDA Range Over the Past 10 Years
Min: -147.7   Max: 1275.4
Current: 6.16

-147.7
1275.4

During the past 13 years, the highest EV/EBITDA Ratio of Overstock.com Inc was 1275.40. The lowest was -147.70. And the median was 10.00.

OSTK's EV-to-EBITDA is ranked higher than
81% of the 872 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.90 vs. OSTK: 6.16 )

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, Overstock.com Inc's stock price is $18.15. Overstock.com Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $0.37. Therefore, Overstock.com Inc's P/E Ratio for today is 49.59.

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


Definition

Overstock.com Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=324.440/45.107
=7.19

Overstock.com Inc's current Enterprise Value is $324 Mil.
Overstock.com Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 5.32 (Dec. 2015 ) + 29.347 (Mar. 2016 ) + 5.778 (Jun. 2016 ) + 4.662 (Sep. 2016 ) = $45 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.

Overstock.com Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=18.15/0.366
=49.59

Overstock.com Inc's share price for today is $18.15.
Overstock.com Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0 (Dec. 2015 ) + 0.523 (Mar. 2016 ) + -0.039 (Jun. 2016 ) + -0.118 (Sep. 2016 ) = $0.37.

* 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.

Overstock.com Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -25.2413.757.008.06-135.657.4718.8612.825.426.03

Overstock.com Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 10.2912.8215.0313.3211.485.425.497.356.926.03
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