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Rackspace Hosting, Inc. (NYSE:RAX)
EV/EBITDA
9.55 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Rackspace Hosting, Inc.'s enterprise value is $4,271 Mil. Rackspace Hosting, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $447 Mil. Therefore, Rackspace Hosting, Inc.'s EV/EBITDA ratio for today is 9.55.

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, Rackspace Hosting, Inc.'s stock price is $31.49. Rackspace Hosting, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $0.60. Therefore, Rackspace Hosting, Inc.'s P/E Ratio for today is 52.10.

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


Definition

Rackspace Hosting, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=4271.495/447.187
=9.55

Rackspace Hosting, Inc.'s current Enterprise Value is $4,271 Mil.
Rackspace Hosting, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 113.123 (Mar. 2013 ) + 109.864 (Jun. 2013 ) + 108.955 (Sep. 2013 ) + 115.245 (Dec. 2013 ) = $447 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.

Rackspace Hosting, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=31.49/0.604
=52.14

Rackspace Hosting, Inc.'s share price for today is $31.49.
Rackspace Hosting, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.19 (Mar. 2013 ) + 0.16 (Jun. 2013 ) + 0.11 (Sep. 2013 ) + 0.144 (Dec. 2013 ) = $0.60.

* 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.

Rackspace Hosting, Inc. Annual Data

Dec03Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.000.000.004.9713.4916.3817.5923.6711.71

Rackspace Hosting, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 15.3517.5922.4815.7422.2623.6715.2011.1715.7411.71
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