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Two Harbors Investment Corp (NYSE:TWO)
EV/EBITDA
-19.33 (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 $-10,727.0 Mil. Two Harbors Investment Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $553.9 Mil. Therefore, Two Harbors Investment Corp's EV/EBITDA ratio for today is -19.33.

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 $10.35. Two Harbors Investment Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $1.11. Therefore, Two Harbors Investment Corp's P/E Ratio for today is 9.40.

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)
=-10726.978/553.917
=-19.37

Two Harbors Investment Corp's current Enterprise Value is $-10,727.0 Mil.
Two Harbors Investment Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was 461.604 (Jun. 2013 ) + -144.778 (Sep. 2013 ) + 273.453 (Dec. 2013 ) + -36.362 (Mar. 2014 ) = $553.9 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)
=10.35/1.106
=9.36

Two Harbors Investment Corp's share price for today is $10.35.
Two Harbors Investment Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was 1.06 (Jun. 2013 ) + -0.53 (Sep. 2013 ) + 0.656 (Dec. 2013 ) + -0.08 (Mar. 2014 ) = $1.11.

* 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda -55.60-55.571.45-78.56-39.95-28.79-14.55-14.87-13.47-19.43
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