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Vonage Holdings Corp (NYSE:VG)
EV/EBITDA
8.99 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Vonage Holdings Corp's enterprise value is $748.1 Mil. Vonage Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $83.2 Mil. Therefore, Vonage Holdings Corp's EV/EBITDA ratio for today is 8.99.

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, Vonage Holdings Corp's stock price is $3.37. Vonage Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $0.08. Therefore, Vonage Holdings Corp's P/E Ratio for today is 43.80.

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


Definition

Vonage Holdings Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=748.128/83.173
=8.99

Vonage Holdings Corp's current Enterprise Value is $748.1 Mil.
Vonage Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 17.764 (Sep. 2013 ) + 18.129 (Dec. 2013 ) + 22.738 (Mar. 2014 ) + 24.542 (Jun. 2014 ) = $83.2 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.

Vonage Holdings Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=3.37/0.077
=43.77

Vonage Holdings Corp's share price for today is $3.37.
Vonage Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.02 (Sep. 2013 ) + 0.017 (Dec. 2013 ) + 0.02 (Mar. 2014 ) + 0.02 (Jun. 2014 ) = $0.08.

* 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.

Vonage Holdings Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.000.00-2.91-2.3718.657.2134.384.134.788.51

Vonage Holdings Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 4.014.574.864.785.924.926.088.5111.8310.09
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