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Re: william_wallace post# 427486

Thursday, 03/26/2020 6:00:55 PM

Thursday, March 26, 2020 6:00:55 PM

Post# of 432984
For those who did not know the definitions, like me.

The enterprise value (EV) to the earnings before interest, tax, depreciation, and amortization (EBITDA) ratio varies by industry. However, the EV/EBITDA for the S&P 500 has typically averaged from 11 to 14 over the last few years. EBITDA measures a firm's overall financial performance, while EV determines the firm's total value.

As of June 2018, the average EV/EBITDA for the S&P was 12.98. As a general guideline, an EV/EBITDA value below 10 is commonly interpreted as healthy and above average by analysts and investors.

Bold numbers are my highlights. IDCC looks very good at 5.75.

Source: https://www.investopedia.com/ask/answers/072715/what-considered-healthy-evebitda.asp

lando1

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