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Red Hat Inc (NYSE:RHT)
EV/EBITDA
35.86 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Red Hat Inc's enterprise value is $13,663 Mil. Red Hat Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in May. 2016 was $381 Mil. Therefore, Red Hat Inc's EV/EBITDA ratio for today is 35.86.

RHT' s EV/EBITDA Range Over the Past 10 Years
Min: 7.7   Max: 68
Current: 35.86

7.7
68

During the past 13 years, the highest EV/EBITDA Ratio of Red Hat Inc was 68.00. The lowest was 7.70. And the median was 35.10.

RHT's EV/EBITDA is ranked lower than
79% of the 1287 Companies
in the Global Software - Application industry.

( Industry Median: 12.88 vs. RHT: 35.86 )

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 $79.13. Red Hat Inc's earnings per share for the trailing twelve months (TTM) ended in May. 2016 was $1.15. Therefore, Red Hat Inc's P/E Ratio for today is 68.81.

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


Definition

Red Hat Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=13663.052/381.026
=35.86

Red Hat Inc's current Enterprise Value is $13,663 Mil.
Red Hat Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in May. 2016 was 96.658 (Aug. 2015 ) + 91.658 (Nov. 2015 ) + 93.768 (Feb. 2016 ) + 98.942 (May. 2016 ) = $381 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.

Red Hat Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=79.13/1.15
=68.81

Red Hat Inc's share price for today is $79.13.
Red Hat Inc's Earnings Per Share for the trailing twelve months (TTM) ended in May. 2016 was 0.28 (Aug. 2015 ) + 0.25 (Nov. 2015 ) + 0.29 (Feb. 2016 ) + 0.33 (May. 2016 ) = $1.15.

* 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.

Red Hat Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
ev2ebitda 32.9118.2111.5536.4939.0634.8032.7832.9135.5530.36

Red Hat Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
ev2ebitda 28.0933.3133.5035.5537.9934.2738.6530.3635.060.00
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