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GuruFocus has detected 2 Warning Signs with EarthLink Holdings Corp $ELNK.
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EarthLink Holdings Corp (NAS:ELNK)
EV-to-EBITDA
5.57 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, EarthLink Holdings Corp's enterprise value is $1,028.8 Mil. EarthLink Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $184.6 Mil. Therefore, EarthLink Holdings Corp's EV/EBITDA ratio for today is 5.57.

ELNK' s EV-to-EBITDA Range Over the Past 10 Years
Min: -39.2   Max: 16
Current: 5.57

-39.2
16

During the past 13 years, the highest EV/EBITDA Ratio of EarthLink Holdings Corp was 16.00. The lowest was -39.20. And the median was 4.70.

ELNK's EV-to-EBITDA is ranked higher than
76% of the 387 Companies
in the Global Telecom Services industry.

( Industry Median: 8.61 vs. ELNK: 5.57 )

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, EarthLink Holdings Corp's stock price is $5.60. EarthLink Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $0.06. Therefore, EarthLink Holdings Corp's P/E Ratio for today is 90.32.

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


Definition

EarthLink Holdings Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1028.773/184.584
=5.57

EarthLink Holdings Corp's current Enterprise Value is $1,028.8 Mil.
EarthLink Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 54.631 (Mar. 2016 ) + 49.219 (Jun. 2016 ) + 43.685 (Sep. 2016 ) + 37.049 (Dec. 2016 ) = $184.6 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.

EarthLink Holdings Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=5.60/0.062
=90.32

EarthLink Holdings Corp's share price for today is $5.60.
EarthLink Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.07 (Mar. 2016 ) + 0.04 (Jun. 2016 ) + 0.002 (Sep. 2016 ) + -0.05 (Dec. 2016 ) = $0.06.

* 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.

EarthLink Holdings Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 6.492.221.965.103.764.25-11.985.496.035.34

EarthLink Holdings Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 5.195.495.106.176.176.035.035.605.695.34
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