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EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Red Hat Inc's enterprise value is $12,375 Mil. Red Hat Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Nov. 2014 was $322 Mil. Therefore, Red Hat Inc's EV/EBITDA ratio for today is 38.47.
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, Red Hat Inc's stock price is $68.04. Red Hat Inc's earnings per share for the trailing twelve months (TTM) ended in Nov. 2014 was $0.95. Therefore, Red Hat Inc's P/E Ratio for today is 72.00.
The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.
Red Hat Inc's EV/EBITDA for today is calculated as:
|EV/EBITDA||=||Enterprise Value (Today)||/||Earnings Before Depreciation and Amortization (TTM)|
Red Hat Inc's current Enterprise Value is $12,375 Mil.
Red Hat Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Nov. 2014 was 78.379 (Feb. 2014 ) + 69.887 (May. 2014 ) + 83.766 (Aug. 2014 ) + 89.603 (Nov. 2014 ) = $322 Mil.
Red Hat Inc's P/E Ratio for today is calculated as:
Red Hat Inc's share price for today is $68.04.
Red Hat Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Nov. 2014 was 0.235 (Feb. 2014 ) + 0.2 (May. 2014 ) + 0.25 (Aug. 2014 ) + 0.26 (Nov. 2014 ) = $0.95.
Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.
Red Hat Inc Annual Data
Red Hat Inc Quarterly Data