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GuruFocus has detected 1 Warning Sign with Valeant Pharmaceuticals International Inc $VRX.
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Valeant Pharmaceuticals International Inc (NYSE:VRX)
EV-to-EBITDA
14.26 (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 $32,324 Mil. Valeant Pharmaceuticals International Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $2,267 Mil. Therefore, Valeant Pharmaceuticals International Inc's EV/EBITDA ratio for today is 14.26.

VRX' s EV-to-EBITDA Range Over the Past 10 Years
Min: -31   Max: 106.8
Current: 14.7

-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 15.70.

VRX's EV-to-EBITDA is ranked higher than
53% of the 797 Companies
in the Global Drug Manufacturers - Specialty & Generic industry.

( Industry Median: 15.26 vs. VRX: 14.70 )

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 $9.25. Valeant Pharmaceuticals International Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $-6.92. 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)
=32323.950/2267
=14.26

Valeant Pharmaceuticals International Inc's current Enterprise Value is $32,324 Mil.
Valeant Pharmaceuticals International Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 807.7 (Mar. 2016 ) + 1030.8 (Jun. 2016 ) + -12.2 (Sep. 2016 ) + 440.7 (Dec. 2016 ) = $2,267 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)
=9.25/-6.92
=

Valeant Pharmaceuticals International Inc's share price for today is $9.25.
Valeant Pharmaceuticals International Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was -1.08 (Mar. 2016 ) + -0.88 (Jun. 2016 ) + -3.49 (Sep. 2016 ) + -1.47 (Dec. 2016 ) = $-6.92.

* 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 4.896.066.64113.6022.9726.1336.9317.9817.9215.49

Valeant Pharmaceuticals International Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 19.5917.9825.6927.3223.4117.9210.529.4314.0915.49
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