Switch to:
Vivus (NAS:VVUS)
EV/EBITDA
-3.62 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Vivus's enterprise value is $179.5 Mil. Vivus's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2014 was $-49.6 Mil. Therefore, Vivus's EV/EBITDA ratio for today is -3.62.

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, Vivus's stock price is $2.42. Vivus's earnings per share for the trailing twelve months (TTM) ended in Dec. 2014 was $-0.80. Therefore, Vivus'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

Vivus's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=179.534/-49.599
=-3.62

Vivus's current Enterprise Value is $179.5 Mil.
Vivus's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2014 was -7.715 (Mar. 2014 ) + -17.275 (Jun. 2014 ) + -7.688 (Sep. 2014 ) + -16.921 (Dec. 2014 ) = $-49.6 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=2.42/-0.795
=

Vivus's share price for today is $2.42.
Vivus's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2014 was -0.15 (Mar. 2014 ) + -0.25 (Jun. 2014 ) + -0.15 (Sep. 2014 ) + -0.245 (Dec. 2014 ) = $-0.80.

* 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.

Vivus Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
ev2ebitda -4.84-6.3029.89-24.87-10.10-8.81-15.45-8.14-5.25-4.57

Vivus Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
ev2ebitda -15.97-8.14-5.48-5.54-3.99-5.25-4.77-6.00-7.73-4.57
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)
FEEDBACK