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PMC-Sierra Inc (NAS:PMCS)
EV/EBITDA
18.11 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, PMC-Sierra Inc's enterprise value is $1,322.6 Mil. PMC-Sierra Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $72.7 Mil. Therefore, PMC-Sierra Inc's EV/EBITDA ratio for today is 18.11.

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, PMC-Sierra Inc's stock price is $7.31. PMC-Sierra Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $-0.13. Therefore, PMC-Sierra Inc's P/E Ratio for today is 0.00.

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


Definition

PMC-Sierra Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1322.633/72.691
=18.20

PMC-Sierra Inc's current Enterprise Value is $1,322.6 Mil.
PMC-Sierra Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 19.953 (Sep. 2013 ) + 20.702 (Dec. 2013 ) + 14.998 (Mar. 2014 ) + 17.038 (Jun. 2014 ) = $72.7 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.

PMC-Sierra Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=7.31/-0.131
=

PMC-Sierra Inc's share price for today is $7.31.
PMC-Sierra Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was -0.01 (Sep. 2013 ) + -0.081 (Dec. 2013 ) + -0.02 (Mar. 2014 ) + -0.02 (Jun. 2014 ) = $-0.13.

* 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.

PMC-Sierra Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 33.1230.23188.2136.736.9415.3411.436.550.0018.84

PMC-Sierra Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 9.8910.900.000.000.000.0018.5918.8419.9318.92
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