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GuruFocus has detected 2 Warning Signs with Valeant Pharmaceuticals International Inc $VRX.
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Valeant Pharmaceuticals International Inc (NYSE:VRX)
EV/EBITDA
12.45 (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 $35,490 Mil. Valeant Pharmaceuticals International Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $2,850 Mil. Therefore, Valeant Pharmaceuticals International Inc's EV/EBITDA ratio for today is 12.45.

VRX' s EV/EBITDA Range Over the Past 10 Years
Min: -31   Max: 106.8
Current: 12.28

-31
106.8

During the past 13 years, the highest EV/EBITDA Ratio of Valeant Pharmaceuticals International Inc was 106.80. The lowest was -31.00. And the median was 14.00.

VRX's EV/EBITDA is ranked higher than
67% of the 600 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 16.72 vs. VRX: 12.28 )

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 $16.04. Valeant Pharmaceuticals International Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $-6.58. Therefore, Valeant Pharmaceuticals International Inc's P/E Ratio for today is .

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)
=35489.625/2850
=12.45

Valeant Pharmaceuticals International Inc's current Enterprise Value is $35,490 Mil.
Valeant Pharmaceuticals International Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 1023.7 (Dec. 2015 ) + 807.7 (Mar. 2016 ) + 1030.8 (Jun. 2016 ) + -12.2 (Sep. 2016 ) = $2,850 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=16.04/-6.58
=

Valeant Pharmaceuticals International Inc's share price for today is $16.04.
Valeant Pharmaceuticals International Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was -1.13 (Dec. 2015 ) + -1.08 (Mar. 2016 ) + -0.88 (Jun. 2016 ) + -3.49 (Sep. 2016 ) = $-6.58.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Valeant Pharmaceuticals International Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda -22.524.896.066.64113.6022.9726.1336.9317.3717.17

Valeant Pharmaceuticals International Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 28.1819.5917.3724.9026.5422.7917.1710.079.0413.27
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