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Vonage Holdings Corp (NYSE:VG)
EV/EBITDA
11.46 (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 $1,139.3 Mil. Vonage Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $99.4 Mil. Therefore, Vonage Holdings Corp's EV/EBITDA ratio for today is 11.46.

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 $4.85. Vonage Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $0.09. Therefore, Vonage Holdings Corp's P/E Ratio for today is 56.40.

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)
=1139.326/99.437
=11.46

Vonage Holdings Corp's current Enterprise Value is $1,139.3 Mil.
Vonage Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was 22.738 (Mar. 2014 ) + 24.542 (Jun. 2014 ) + 24.018 (Sep. 2014 ) + 28.139 (Dec. 2014 ) = $99.4 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)
=4.85/0.086
=56.40

Vonage Holdings Corp's share price for today is $4.85.
Vonage Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was 0.02 (Mar. 2014 ) + 0.02 (Jun. 2014 ) + 0.02 (Sep. 2014 ) + 0.026 (Dec. 2014 ) = $0.09.

* 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda 0.00-2.91-2.3715.947.2133.644.134.788.519.03

Vonage Holdings Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda 4.864.785.924.925.998.5111.8310.008.019.03
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