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VMware Inc (NYSE:VMW)
EV/EBITDA
15.33 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, VMware Inc's enterprise value is $23,999 Mil. VMware Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2016 was $1,565 Mil. Therefore, VMware Inc's EV/EBITDA ratio for today is 15.33.

VMW' s EV/EBITDA Range Over the Past 10 Years
Min: 8.3   Max: 176.1
Current: 15.34

8.3
176.1

During the past 12 years, the highest EV/EBITDA Ratio of VMware Inc was 176.10. The lowest was 8.30. And the median was 27.00.

VMW's EV/EBITDA is ranked lower than
57% of the 1449 Companies
in the Global Software - Infrastructure industry.

( Industry Median: 12.53 vs. VMW: 15.34 )

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, VMware Inc's stock price is $72.46. VMware Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2016 was $2.26. Therefore, VMware Inc's P/E Ratio for today is 32.02.

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


Definition

VMware Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=23998.790/1565
=15.33

VMware Inc's current Enterprise Value is $23,999 Mil.
VMware Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2016 was 303 (Jun. 2015 ) + 419 (Sep. 2015 ) + 548 (Dec. 2015 ) + 295 (Mar. 2016 ) = $1,565 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.

VMware Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=72.46/2.263
=32.02

VMware Inc's share price for today is $72.46.
VMware Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2016 was 0.4 (Jun. 2015 ) + 0.6 (Sep. 2015 ) + 0.883 (Dec. 2015 ) + 0.38 (Mar. 2016 ) = $2.26.

* 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.

VMware Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 0.0088.1115.8034.9950.1827.9928.9022.1021.0611.35

VMware Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
ev2ebitda 22.1026.4724.7924.5021.0621.0121.9518.6011.359.87
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