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Richardson Electronics (NAS:RELL)
EV/EBITDA
-1.75 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Richardson Electronics's enterprise value is $10.7 Mil. Richardson Electronics's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $-6.1 Mil. Therefore, Richardson Electronics's EV/EBITDA ratio for today is -1.75.

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, Richardson Electronics's stock price is $8.99. Richardson Electronics's earnings per share for the trailing twelve months (TTM) ended in Nov. 2014 was $-0.33. Therefore, Richardson Electronics's P/E Ratio for today is .

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


Definition

Richardson Electronics's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=10.712/-6.12
=-1.75

Richardson Electronics's current Enterprise Value is $10.7 Mil.
Richardson Electronics's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was -0.611 (Feb. 2014 ) + -3.626 (May. 2014 ) + -0.167 (Aug. 2014 ) + -1.716 (Nov. 2014 ) = $-6.1 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.

Richardson Electronics's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.99/-0.329
=

Richardson Electronics's share price for today is $8.99.
Richardson Electronics's Earnings Per Share for the trailing twelve months (TTM) ended in Nov. 2014 was -0.04 (Feb. 2014 ) + -0.209 (May. 2014 ) + -0.01 (Aug. 2014 ) + -0.07 (Nov. 2014 ) = $-0.33.

* 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.

Richardson Electronics Annual Data

May05May06May07May08May09May10May11May12May13May14
ev2ebitda 18.7516.3820.0133.60-62.3327.794.206.0336.43-2.69

Richardson Electronics Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
ev2ebitda 7.836.1611.6036.4337.8437.86-31.34-2.69-5.06-4.31
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