Switch to:
Varian Medical Systems Inc (NYSE:VAR)
EV/EBITDA
12.28 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Varian Medical Systems Inc's enterprise value is $7,939 Mil. Varian Medical Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $644 Mil. Therefore, Varian Medical Systems Inc's EV/EBITDA ratio for today is 12.28.

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, Varian Medical Systems Inc's stock price is $81.84. Varian Medical Systems Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.89. Therefore, Varian Medical Systems Inc's P/E Ratio for today is 21.00.

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


Definition

Varian Medical Systems Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7938.618/643.863
=12.33

Varian Medical Systems Inc's current Enterprise Value is $7,939 Mil.
Varian Medical Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 178.077 (Sep. 2013 ) + 160.324 (Dec. 2013 ) + 144.576 (Mar. 2014 ) + 160.886 (Jun. 2014 ) = $644 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.

Varian Medical Systems Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=81.84/3.889
=21.04

Varian Medical Systems Inc's share price for today is $81.84.
Varian Medical Systems Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 1.079 (Sep. 2013 ) + 0.91 (Dec. 2013 ) + 0.88 (Mar. 2014 ) + 1.02 (Jun. 2014 ) = $3.89.

* 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.

Varian Medical Systems Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev2ebitda 15.1914.2018.7813.2314.549.1011.388.509.1010.85

Varian Medical Systems Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 11.439.629.1010.5310.579.6110.8511.1512.4412.75
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK