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GuruFocus has detected 6 Warning Signs with Nicholas Financial Inc $NICK.
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Nicholas Financial Inc (NAS:NICK)
EV-to-EBITDA
11.31 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Nicholas Financial Inc's enterprise value is $276.12 Mil. Nicholas Financial Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $24.42 Mil. Therefore, Nicholas Financial Inc's EV/EBITDA ratio for today is 11.31.

NICK' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.1   Max: 15.03
Current: 15.03

6.1
15.03

During the past 13 years, the highest EV/EBITDA Ratio of Nicholas Financial Inc was 15.03. The lowest was 6.10. And the median was 8.80.

NICK's EV-to-EBITDA is ranked higher than
58% of the 384 Companies
in the Global Credit Services industry.

( Industry Median: 13.89 vs. NICK: 15.03 )

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, Nicholas Financial Inc's stock price is $8.38. Nicholas Financial Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $1.16. Therefore, Nicholas Financial Inc's P/E Ratio for today is 7.22.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=276.124/24.418
=11.31

Nicholas Financial Inc's current Enterprise Value is $276.12 Mil.
Nicholas Financial Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 6.809 (Mar. 2016 ) + 7.081 (Jun. 2016 ) + 5.541 (Sep. 2016 ) + 4.987 (Dec. 2016 ) = $24.42 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=8.38/1.16
=7.22

Nicholas Financial Inc's share price for today is $8.38.
Nicholas Financial Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.33 (Mar. 2016 ) + 0.37 (Jun. 2016 ) + 0.25 (Sep. 2016 ) + 0.21 (Dec. 2016 ) = $1.16.

* 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.

Nicholas Financial Inc Annual Data

Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16Mar17
ev2ebitda 11.7310.758.407.836.467.959.209.369.900.00

Nicholas Financial Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 9.899.369.269.839.799.909.9910.8312.420.00
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