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GuruFocus has detected 3 Warning Signs with Vonage Holdings Corp $VG.
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Vonage Holdings Corp (NYSE:VG)
EV-to-EBITDA
17.84 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Vonage Holdings Corp's enterprise value is $1,843.8 Mil. Vonage Holdings Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $103.4 Mil. Therefore, Vonage Holdings Corp's EV/EBITDA ratio for today is 17.84.

VG' s EV-to-EBITDA Range Over the Past 10 Years
Min: -5.9   Max: 80.4
Current: 17.82

-5.9
80.4

During the past 13 years, the highest EV/EBITDA Ratio of Vonage Holdings Corp was 80.40. The lowest was -5.90. And the median was 7.60.

VG's EV-to-EBITDA is ranked lower than
82% of the 751 Companies
in the Global Telecom Services industry.

( Industry Median: 7.67 vs. VG: 17.82 )

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, Vonage Holdings Corp's stock price is $6.91. Vonage Holdings Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $0.04. Therefore, Vonage Holdings Corp's P/E Ratio for today is 157.05.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=1843.762/103.35
=17.84

Vonage Holdings Corp's current Enterprise Value is $1,843.8 Mil.
Vonage Holdings Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 23.734 (Jun. 2016 ) + 32.571 (Sep. 2016 ) + 24.189 (Dec. 2016 ) + 22.856 (Mar. 2017 ) = $103.4 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=6.91/0.044
=157.05

Vonage Holdings Corp's share price for today is $6.91.
Vonage Holdings Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.004 (Jun. 2016 ) + 0.04 (Sep. 2016 ) + 0 (Dec. 2016 ) + 0 (Mar. 2017 ) = $0.04.

* 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.

Vonage Holdings Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda -2.3716.027.1534.484.144.818.398.4312.0815.37

Vonage Holdings Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 8.439.819.4211.9012.089.7015.0514.8015.370.00
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