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GuruFocus has detected 3 Warning Signs with Tesaro Inc $TSRO.
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Tesaro Inc (NAS:TSRO)
EV-to-EBITDA
-20.05 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Tesaro Inc's enterprise value is $7,550.75 Mil. Tesaro Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $-376.64 Mil. Therefore, Tesaro Inc's EV/EBITDA ratio for today is -20.05.

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 $151.88. Tesaro Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $-8.16. 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)
=7550.753/-376.644
=-20.05

Tesaro Inc's current Enterprise Value is $7,550.75 Mil.
Tesaro Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was -86.053 (Mar. 2016 ) + -53.541 (Jun. 2016 ) + -96.259 (Sep. 2016 ) + -140.791 (Dec. 2016 ) = $-376.64 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=151.88/-8.16
=

Tesaro Inc's share price for today is $151.88.
Tesaro Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -2.22 (Mar. 2016 ) + -1.28 (Jun. 2016 ) + -1.98 (Sep. 2016 ) + -2.68 (Dec. 2016 ) = $-8.16.

* 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.

Tesaro Inc Annual Data

Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 0.000.000.000.000.00-5.42-8.60-7.18-8.18-17.41

Tesaro Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda -5.39-7.18-12.44-11.68-6.86-8.18-5.55-13.00-14.73-17.41
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