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Red Hat Inc  (NYSE:RHT) EV-to-EBITDA: 40.56 (As of Today)

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Red Hat Inc's enterprise value is $17,977 Mil. Red Hat Inc's EBITDA for the trailing twelve months (TTM) ended in May. 2017 was $443 Mil. Therefore, Red Hat Inc's EV-to-EBITDA for today is 40.56.

NYSE:RHT' s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.7   Max: 47.7
Current: 40.56

7.7
47.7

During the past 13 years, the highest EV-to-EBITDA of Red Hat Inc was 47.70. The lowest was 7.70. And the median was 33.70.

NYSE:RHT's EV-to-EBITDA is ranked lower than
79% of the 1363 Companies
in the Global industry.

( Industry Median: 14.91 vs. NYSE:RHT: 40.56 )

EV-to-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 PE Ratio to determine the fair market value of a company.

As of today, Red Hat Inc's stock price is $106.30. Red Hat Inc's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2017 was $1.46. Therefore, Red Hat Inc's PE Ratio for today is 72.81.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Red Hat Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
EV-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.78 32.91 35.55 30.36 32.46

Red Hat Inc Quarterly Data

Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17
EV-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.06 31.99 33.64 32.46 33.87

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Red Hat Inc's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=17976.652/443.201
=40.56

Red Hat Inc's current Enterprise Value is $17,977 Mil.
Red Hat Inc's EBITDA for the trailing twelve months (TTM) ended in May. 2017 was 106.52 (Aug. 2016 ) + 104.597 (Nov. 2016 ) + 119.252 (Feb. 2017 ) + 112.832 (May. 2017 ) = $443 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV-to-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 PE Ratio to determine the fair market value of a company.

Red Hat Inc's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=106.30/1.46
=72.81

Red Hat Inc's share price for today is $106.30.
Red Hat Inc's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2017 was 0.32 (Aug. 2016 ) + 0.37 (Nov. 2016 ) + 0.37 (Feb. 2017 ) + 0.4 (May. 2017 ) = $1.46.

* 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-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio.

Please read Which price ratio outperforms the enterprise multiple?


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