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Two Harbors Investment Corp (NYSE:TWO)
EV/EBITDA
-22.58 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Two Harbors Investment Corp's enterprise value is $-11,133.7 Mil. Two Harbors Investment Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $492.6 Mil. Therefore, Two Harbors Investment Corp's EV/EBITDA ratio for today is -22.58.

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, Two Harbors Investment Corp's stock price is $10.50. Two Harbors Investment Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.22. Therefore, Two Harbors Investment Corp's P/E Ratio for today is 8.60.

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


Definition

Two Harbors Investment Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=-11133.707/492.582
=-22.60

Two Harbors Investment Corp's current Enterprise Value is $-11,133.7 Mil.
Two Harbors Investment Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 273.453 (Dec. 2013 ) + -36.362 (Mar. 2014 ) + 41.736 (Jun. 2014 ) + 213.755 (Sep. 2014 ) = $492.6 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.

Two Harbors Investment Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=10.50/1.216
=8.63

Two Harbors Investment Corp's share price for today is $10.50.
Two Harbors Investment Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.656 (Dec. 2013 ) + -0.08 (Mar. 2014 ) + 0.11 (Jun. 2014 ) + 0.53 (Sep. 2014 ) = $1.22.

* 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.

Two Harbors Investment Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.000.000.00-259.49-1.37-49.92-50.36-47.58-13.47

Two Harbors Investment Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 1.42-60.99-47.58-32.95-15.52-17.47-13.47-19.43-80.48-23.10
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