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Radian Group Inc (NYSE:RDN)
EV/EBITDA
5.33 (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 $3,004 Mil. Radian Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $564 Mil. Therefore, Radian Group Inc's EV/EBITDA ratio for today is 5.33.

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 $16.35. Radian Group Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $4.15. Therefore, Radian Group Inc's P/E Ratio for today is 3.94.

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)
=3003.688/563.556
=5.33

Radian Group Inc's current Enterprise Value is $3,004 Mil.
Radian Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 237.906 (Mar. 2014 ) + 214.855 (Jun. 2014 ) + 194.812 (Sep. 2014 ) + -84.017 (Dec. 2014 ) = $564 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=16.35/4.148
=3.94

Radian Group Inc's share price for today is $16.35.
Radian Group Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.94 (Mar. 2014 ) + 0.78 (Jun. 2014 ) + 0.67 (Sep. 2014 ) + 1.758 (Dec. 2014 ) = $4.15.

* 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.

Radian Group Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 6.595.57-0.49-0.080.82-0.670.12-2.44-83.295.45

Radian Group Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda -2.40-2.447.40-6.91-7.87-83.295.234.142.955.45
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