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Two Harbors Investment Corp (NYSE:TWO)
EV/EBITDA
-12.93 (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 $-9,923.7 Mil. Two Harbors Investment Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $761.5 Mil. Therefore, Two Harbors Investment Corp's EV/EBITDA ratio for today is -12.93.

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 $10.16. Two Harbors Investment Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $1.66. Therefore, Two Harbors Investment Corp's P/E Ratio for today is 6.10.

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)
=-9923.665/761.532
=-13.03

Two Harbors Investment Corp's current Enterprise Value is $-9,923.7 Mil.
Two Harbors Investment Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 171.253 (Mar. 2013 ) + 461.604 (Jun. 2013 ) + -144.778 (Sep. 2013 ) + 273.453 (Dec. 2013 ) = $761.5 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)
=10.16/1.656
=6.14

Two Harbors Investment Corp's share price for today is $10.16.
Two Harbors Investment Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.47 (Mar. 2013 ) + 1.06 (Jun. 2013 ) + -0.53 (Sep. 2013 ) + 0.656 (Dec. 2013 ) = $1.66.

* 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 0.000.000.000.0081.300.00-35.12-55.60-39.95-13.47

Two Harbors Investment Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda -87.58-55.60-55.571.45-78.56-39.95-28.79-14.55-14.87-13.47
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