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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.

Related Terms

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

 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 ev2ebitda 0.00 0.00 0.00 0.00 0.00 -5.42 -8.60 -7.18 -8.18 -17.41

Tesaro Inc Quarterly Data

 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 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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