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GuruFocus has detected 2 Warning Signs with Radian Group Inc $RDN.
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Radian Group Inc (NYSE:RDN)
EV-to-EBITDA
6.50 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Radian Group Inc's enterprise value is $3,800 Mil. Radian Group Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $585 Mil. Therefore, Radian Group Inc's EV/EBITDA ratio for today is 6.50.

RDN' s EV-to-EBITDA Range Over the Past 10 Years
Min: -95.3   Max: 16.4
Current: 6.51

-95.3
16.4

During the past 13 years, the highest EV/EBITDA Ratio of Radian Group Inc was 16.40. The lowest was -95.30. And the median was 0.50.

RDN's EV-to-EBITDA is ranked higher than
67% of the 104 Companies
in the Global Insurance - Specialty industry.

( Industry Median: 7.71 vs. RDN: 6.51 )

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, Radian Group Inc's stock price is $16.51. Radian Group Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.43. Therefore, Radian Group Inc's P/E Ratio for today is 11.55.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=3799.621/584.679
=6.50

Radian Group Inc's current Enterprise Value is $3,800 Mil.
Radian Group Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 182.404 (Jun. 2016 ) + 150.016 (Sep. 2016 ) + 118.355 (Dec. 2016 ) + 133.904 (Mar. 2017 ) = $585 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=16.51/1.43
=11.55

Radian Group Inc's share price for today is $16.51.
Radian Group Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.44 (Jun. 2016 ) + 0.37 (Sep. 2016 ) + 0.28 (Dec. 2016 ) + 0.34 (Mar. 2017 ) = $1.43.

* 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.

Radian Group Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -0.49-0.080.79-0.670.12-4.66-83.295.425.297.15

Radian Group Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 5.425.626.315.675.295.824.595.257.157.57
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