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Vivus (NAS:VVUS)
EV/EBITDA
-6.54 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Vivus's enterprise value is $268.61 Mil. Vivus's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $-41.07 Mil. Therefore, Vivus's EV/EBITDA ratio for today is -6.54.

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 $3.39. Vivus's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $-0.72. Therefore, Vivus's P/E Ratio for today is 0.00.

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)
=268.605/-41.073
=-6.54

Vivus's current Enterprise Value is $268.61 Mil.
Vivus's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was -8.395 (Dec. 2013 ) + -7.715 (Mar. 2014 ) + -17.275 (Jun. 2014 ) + -7.688 (Sep. 2014 ) = $-41.07 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)
=3.39/-0.718
=

Vivus's share price for today is $3.39.
Vivus's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was -0.168 (Dec. 2013 ) + -0.15 (Mar. 2014 ) + -0.25 (Jun. 2014 ) + -0.15 (Sep. 2014 ) = $-0.72.

* 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda -7.51-4.84-6.5229.89-24.87-10.77-8.49-15.42-8.15-5.25

Vivus Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda -40.06-15.92-8.15-5.49-5.55-3.99-5.25-4.77-5.86-8.13
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