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Tesaro Inc (NAS:TSRO)
EV/EBITDA
-5.89 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Tesaro Inc's enterprise value is $1,396.99 Mil. Tesaro Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2015 was $-237.30 Mil. Therefore, Tesaro Inc's EV/EBITDA ratio for today is -5.89.

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, Tesaro Inc's stock price is $37.38. Tesaro Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2015 was $-6.36. Therefore, Tesaro 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

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1396.989/-237.301
=-5.89

Tesaro Inc's current Enterprise Value is $1,396.99 Mil.
Tesaro Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2015 was -44.681 (Mar. 2015 ) + -58.92 (Jun. 2015 ) + -62.523 (Sep. 2015 ) + -71.177 (Dec. 2015 ) = $-237.30 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=37.38/-6.356
=

Tesaro Inc's share price for today is $37.38.
Tesaro Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2015 was -1.3 (Mar. 2015 ) + -1.51 (Jun. 2015 ) + -1.66 (Sep. 2015 ) + -1.886 (Dec. 2015 ) = $-6.36.

* 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.

Tesaro Inc Annual Data

Dec11Dec12Dec13Dec14Dec15
ev2ebitda 0.000.000.000.000.000.00-5.42-8.60-7.18-8.42

Tesaro Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
ev2ebitda -12.71-8.60-7.14-7.00-5.39-7.18-12.45-11.53-6.78-8.42
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