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GuruFocus has detected 4 Warning Signs with Radian Group Inc $RDN.
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Radian Group Inc (NYSE:RDN)
EV-to-EBITDA
8.52 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Radian Group Inc's enterprise value is $5,014 Mil. Radian Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $589 Mil. Therefore, Radian Group Inc's EV/EBITDA ratio for today is 8.52.

RDN' s EV-to-EBITDA Range Over the Past 10 Years
Min: -89.5   Max: 16.4
Current: 8.64

-89.5
16.4

During the past 13 years, the highest EV/EBITDA Ratio of Radian Group Inc was 16.40. The lowest was -89.50. And the median was 0.55.

RDN's EV-to-EBITDA is ranked lower than
57% of the 51 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.86 vs. RDN: 8.64 )

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, Radian Group Inc's stock price is $18.63. Radian Group Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $1.42. Therefore, Radian Group Inc's P/E Ratio for today is 13.12.

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


Definition

Radian Group Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=5013.924/588.799
=8.52

Radian Group Inc's current Enterprise Value is $5,014 Mil.
Radian Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 129.115 (Dec. 2015 ) + 127.264 (Mar. 2016 ) + 182.404 (Jun. 2016 ) + 150.016 (Sep. 2016 ) = $589 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.

Radian Group Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=18.63/1.42
=13.12

Radian Group Inc's share price for today is $18.63.
Radian Group Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.32 (Dec. 2015 ) + 0.29 (Mar. 2016 ) + 0.44 (Jun. 2016 ) + 0.37 (Sep. 2016 ) = $1.42.

* 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.

Radian Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -0.49-0.080.79-0.670.12-4.66-83.295.425.298.43

Radian Group Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 4.025.425.626.315.675.296.234.595.258.43
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