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GuruFocus has detected 6 Warning Signs with athenahealth Inc $ATHN.
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athenahealth Inc (NAS:ATHN)
EV-to-EBITDA
33.77 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, athenahealth Inc's enterprise value is $6,420 Mil. athenahealth Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2017 was $190 Mil. Therefore, athenahealth Inc's EV/EBITDA ratio for today is 33.77.

ATHN' s EV-to-EBITDA Range Over the Past 10 Years
Min: 23.3   Max: 134.7
Current: 33.77

23.3
134.7

During the past 13 years, the highest EV/EBITDA Ratio of athenahealth Inc was 134.70. The lowest was 23.30. And the median was 48.65.

ATHN's EV-to-EBITDA is ranked lower than
77% of the 1363 Companies
in the Global Health Information Services industry.

( Industry Median: 14.91 vs. ATHN: 33.77 )

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, athenahealth Inc's stock price is $155.93. athenahealth Inc's earnings per share for the trailing twelve months (TTM) ended in Jun. 2017 was $0.80. Therefore, athenahealth Inc's P/E Ratio for today is 194.91.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=6420.140/190.095
=33.77

athenahealth Inc's current Enterprise Value is $6,420 Mil.
athenahealth Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2017 was 52.65 (Sep. 2016 ) + 51.345 (Dec. 2016 ) + 38.6 (Mar. 2017 ) + 47.5 (Jun. 2017 ) = $190 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=155.93/0.8
=194.91

athenahealth Inc's share price for today is $155.93.
athenahealth Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2017 was 0.35 (Sep. 2016 ) + 0.24 (Dec. 2016 ) + -0.03 (Mar. 2017 ) + 0.24 (Jun. 2017 ) = $0.80.

* 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.

athenahealth Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 109.8576.1252.8335.7931.0038.4276.1659.5245.0425.36

athenahealth Inc Quarterly Data

Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17Jun17
ev2ebitda 48.3437.1337.4245.0435.0338.1932.7025.3626.7230.82
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