Switch to:
Valeant Pharmaceuticals International Inc (NYSE:VRX)
EV/EBITDA
20.27 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Valeant Pharmaceuticals International Inc's enterprise value is $62,682 Mil. Valeant Pharmaceuticals International Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $3,092 Mil. Therefore, Valeant Pharmaceuticals International Inc's EV/EBITDA ratio for today is 20.27.

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, Valeant Pharmaceuticals International Inc's stock price is $140.33. Valeant Pharmaceuticals International Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.48. Therefore, Valeant Pharmaceuticals International Inc's P/E Ratio for today is 94.82.

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


Definition

Valeant Pharmaceuticals International Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=62681.900/3091.97
=20.27

Valeant Pharmaceuticals International Inc's current Enterprise Value is $62,682 Mil.
Valeant Pharmaceuticals International Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 595.27 (Dec. 2013 ) + 652.4 (Mar. 2014 ) + 769.9 (Jun. 2014 ) + 1074.4 (Sep. 2014 ) = $3,092 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.

Valeant Pharmaceuticals International Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=140.33/1.48
=94.82

Valeant Pharmaceuticals International Inc's share price for today is $140.33.
Valeant Pharmaceuticals International Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.37 (Dec. 2013 ) + -0.07 (Mar. 2014 ) + 0.37 (Jun. 2014 ) + 0.81 (Sep. 2014 ) = $1.48.

* 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.

Valeant Pharmaceuticals International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 9.338.76-22.534.896.056.64113.5523.0026.1336.93

Valeant Pharmaceuticals International Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 19.1921.4326.1327.5026.2845.2636.9335.7228.1819.60
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