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RCM Technologies Inc (NAS:RCMT)
EV/EBITDA
14.85 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, RCM Technologies Inc's enterprise value is $97.0 Mil. RCM Technologies Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $6.5 Mil. Therefore, RCM Technologies Inc's EV/EBITDA ratio for today is 14.85.

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, RCM Technologies Inc's stock price is $8.39. RCM Technologies Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.27. Therefore, RCM Technologies Inc's P/E Ratio for today is 30.85.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=97.028/6.536
=14.85

RCM Technologies Inc's current Enterprise Value is $97.0 Mil.
RCM Technologies Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was -2.197 (Dec. 2013 ) + 2.261 (Mar. 2014 ) + 3.302 (Jun. 2014 ) + 3.17 (Sep. 2014 ) = $6.5 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.39/0.272
=30.85

RCM Technologies Inc's share price for today is $8.39.
RCM Technologies Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.128 (Dec. 2013 ) + 0.1 (Mar. 2014 ) + 0.15 (Jun. 2014 ) + 0.15 (Sep. 2014 ) = $0.27.

* 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.

RCM Technologies Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 13.237.635.914.73-0.431.533.484.637.4620.56

RCM Technologies Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 5.534.987.469.527.577.9020.5618.9312.4713.25
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