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Varian Medical Systems Inc (NYSE:VAR)
EV/EBITDA
12.52 (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 $8,116 Mil. Varian Medical Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $648 Mil. Therefore, Varian Medical Systems Inc's EV/EBITDA ratio for today is 12.52.

VAR' s EV/EBITDA Range Over the Past 10 Years
Min: 6.3   Max: 23
Current: 12.53

6.3
23

During the past 13 years, the highest EV/EBITDA Ratio of Varian Medical Systems Inc was 23.00. The lowest was 6.30. And the median was 12.30.

VAR's EV/EBITDA is ranked higher than
62% of the 200 Companies
in the Global Medical Devices industry.

( Industry Median: 16.23 vs. VAR: 12.53 )

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 $89.78. Varian Medical Systems Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $4.20. Therefore, Varian Medical Systems Inc's P/E Ratio for today is 21.38.

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)
=8115.677/648
=12.52

Varian Medical Systems Inc's current Enterprise Value is $8,116 Mil.
Varian Medical Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 139.069 (Dec. 2015 ) + 157.739 (Mar. 2016 ) + 153.449 (Jun. 2016 ) + 197.743 (Sep. 2016 ) = $648 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=89.78/4.2
=21.38

Varian Medical Systems Inc's share price for today is $89.78.
Varian Medical Systems Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 0.91 (Dec. 2015 ) + 1.01 (Mar. 2016 ) + 1.04 (Jun. 2016 ) + 1.24 (Sep. 2016 ) = $4.20.

* 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.

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 local exchange's currency.

Varian Medical Systems Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
ev2ebitda 13.2414.639.1011.388.509.1010.7311.8110.9314.07

Varian Medical Systems Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 12.5311.8112.9513.7712.0110.9312.2612.1612.6614.07
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