Switch to:
Vonage Holdings Corp (NYSE:VG)
EV/EBITDA
9.09 (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 $812.7 Mil. Vonage Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $89.4 Mil. Therefore, Vonage Holdings Corp's EV/EBITDA ratio for today is 9.09.

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 $3.77. Vonage Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $0.08. Therefore, Vonage Holdings Corp's P/E Ratio for today is 48.96.

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)
=812.684/89.427
=9.09

Vonage Holdings Corp's current Enterprise Value is $812.7 Mil.
Vonage Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 18.129 (Dec. 2013 ) + 22.738 (Mar. 2014 ) + 24.542 (Jun. 2014 ) + 24.018 (Sep. 2014 ) = $89.4 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)
=3.77/0.077
=48.96

Vonage Holdings Corp's share price for today is $3.77.
Vonage Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.017 (Dec. 2013 ) + 0.02 (Mar. 2014 ) + 0.02 (Jun. 2014 ) + 0.02 (Sep. 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 0.000.00-2.91-2.3714.556.8931.934.124.788.51

Vonage Holdings Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 4.574.864.785.924.925.998.5111.8310.028.19
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