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Westell Technologies Inc (NAS:WSTL)
EV/EBITDA
33.90 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Westell Technologies Inc's enterprise value is $74.6 Mil. Westell Technologies Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2014 was $2.2 Mil. Therefore, Westell Technologies Inc's EV/EBITDA ratio for today is 33.90.

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, Westell Technologies Inc's stock price is $2.10. Westell Technologies Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2014 was $0.08. Therefore, Westell Technologies Inc's P/E Ratio for today is 26.30.

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


Definition

Westell Technologies Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=74.550/2.216
=33.64

Westell Technologies Inc's current Enterprise Value is $74.6 Mil.
Westell Technologies Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2014 was -0.826 (Jun. 2013 ) + 2.667 (Sep. 2013 ) + 2.909 (Dec. 2013 ) + -2.534 (Mar. 2014 ) = $2.2 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.

Westell Technologies Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=2.10/0.08
=26.25

Westell Technologies Inc's share price for today is $2.10.
Westell Technologies Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2014 was -0.05 (Jun. 2013 ) + 0.02 (Sep. 2013 ) + 0.03 (Dec. 2013 ) + 0.08 (Mar. 2014 ) = $0.08.

* 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.

Westell Technologies Inc Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebitda 9.577.543.750.000.002.5410.232.720.0075.69

Westell Technologies Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
ev2ebitda 1.042.720.000.000.000.000.000.003,134.6975.69
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