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Tenet Healthcare Corp (NYSE:THC)
EV/EBITDA
9.60 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Tenet Healthcare Corp's enterprise value is $16,805 Mil. Tenet Healthcare Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $1,750 Mil. Therefore, Tenet Healthcare Corp's EV/EBITDA ratio for today is 9.60.

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, Tenet Healthcare Corp's stock price is $51.38. Tenet Healthcare Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $0.05. Therefore, Tenet Healthcare Corp's P/E Ratio for today is 969.43.

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


Definition

Tenet Healthcare Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=16804.916/1750
=9.60

Tenet Healthcare Corp's current Enterprise Value is $16,805 Mil.
Tenet Healthcare Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 363 (Mar. 2014 ) + 416 (Jun. 2014 ) + 394 (Sep. 2014 ) + 577 (Dec. 2014 ) = $1,750 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.

Tenet Healthcare Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=51.38/0.053
=969.43

Tenet Healthcare Corp's share price for today is $51.38.
Tenet Healthcare Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was -0.33 (Mar. 2014 ) + -0.27 (Jun. 2014 ) + 0.09 (Sep. 2014 ) + 0.563 (Dec. 2014 ) = $0.05.

* 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.

Tenet Healthcare Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 17.73-19.9010.015.766.167.417.177.1117.359.56

Tenet Healthcare Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 7.447.1110.8412.5612.0317.3513.4911.3211.319.56
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