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RCM Technologies Inc (NAS:RCMT)
EV/EBITDA
8.42 (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 $98.3 Mil. RCM Technologies Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $11.7 Mil. Therefore, RCM Technologies Inc's EV/EBITDA ratio for today is 8.42.

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 $6.67. RCM Technologies Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $0.53. Therefore, RCM Technologies Inc's P/E Ratio for today is 12.49.

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)
=98.340/11.673
=8.42

RCM Technologies Inc's current Enterprise Value is $98.3 Mil.
RCM Technologies Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 2.261 (Mar. 2014 ) + 3.302 (Jun. 2014 ) + 3.17 (Sep. 2014 ) + 2.94 (Dec. 2014 ) = $11.7 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=6.67/0.534
=12.49

RCM Technologies Inc's share price for today is $6.67.
RCM Technologies Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.1 (Mar. 2014 ) + 0.15 (Jun. 2014 ) + 0.15 (Sep. 2014 ) + 0.134 (Dec. 2014 ) = $0.53.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 7.635.914.73-0.431.533.484.637.4620.568.69

RCM Technologies Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 4.987.469.527.577.9020.5618.9312.4713.258.69
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