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GuruFocus has detected 3 Warning Signs with Splunk Inc $SPLK.
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Splunk Inc (NAS:SPLK)
EV-to-EBITDA
-22.96 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Splunk Inc's enterprise value is $7,411.6 Mil. Splunk Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2016 was $-322.8 Mil. Therefore, Splunk Inc's EV/EBITDA ratio for today is -22.96.

SPLK' s EV-to-EBITDA Range Over the Past 10 Years
Min: -316.3   Max: -10.6
Current: -23.78

-316.3
-10.6

During the past 8 years, the highest EV/EBITDA Ratio of Splunk Inc was -10.60. The lowest was -316.30. And the median was -36.30.

SPLK's EV-to-EBITDA is ranked higher than
99% of the 1095 Companies
in the Global Software - Application industry.

( Industry Median: 12.81 vs. SPLK: -23.78 )

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, Splunk Inc's stock price is $62.62. Splunk Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2016 was $-2.73. Therefore, Splunk Inc'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

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7411.628/-322.816
=-22.96

Splunk Inc's current Enterprise Value is $7,411.6 Mil.
Splunk Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2016 was -73.007 (Jan. 2016 ) + -91.682 (Apr. 2016 ) + -75.453 (Jul. 2016 ) + -82.674 (Oct. 2016 ) = $-322.8 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=62.62/-2.73
=

Splunk Inc's share price for today is $62.62.
Splunk Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2016 was -0.62 (Jan. 2016 ) + -0.77 (Apr. 2016 ) + -0.65 (Jul. 2016 ) + -0.69 (Oct. 2016 ) = $-2.73.

* 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.

Splunk Inc Annual Data

Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
ev2ebitda 0.000.000.000.000.00-174.00-106.38-26.38-18.24-21.81

Splunk Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebitda -38.61-26.38-32.43-34.57-24.44-18.24-19.39-23.64-22.10-21.81
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