Citrix Systems’ EV-to-EBITDA Ratio: CTXS

Citrix Systems EV-EBITDA Ratio is a financial metric used to evaluate the value of a company by dividing its enterprise value (EV) with its earnings before interest, taxes, depreciation, and amortization (EBITDA). As of the current date, Citrix Systems has a business value of $15,777 million, and its EBITDA for the last twelve months ending in June 2022 was $611 million. This results in Citrix Systems’ EV-EBITDA Ratio being 25.81.

The EV-EBITDA ratio is a crucial valuation multiple in finance and investments, often used in combination with or as an alternative to the P/E Ratio to ascertain the fair market value of a company.

On the current date, Citrix Systems’ share price is $103.90, and its earnings per share (diluted) for the last twelve months ending in June 2022 was $2,590. This leads to Citrix Systems’ P/E Ratio being 40.12.

The classic EV-EBITDA ratio is considered better at encapsulating debt and net cash than the P/E Ratio.

Citrix Systems’ historical EV to EBITDA data trends can be observed through the chart and table below:

Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
EV to EBITDA 16.87 16.63 19.85 22.07 27.91

In the software application subindustry, Citrix Systems’ EV-EBITDA ratio, along with its competitors’ market capitalization and EV-EBITDA data, can be compared for a competitive analysis.

Furthermore, the distribution of Citrix Systems’ EV to EBITDA within the software industry and technology sector can be visualized through distribution charts.

The calculation of Citrix Systems’ EV to EBITDA involves determining the company’s enterprise value and EBITDA for the trailing twelve months ending in June 2022. This information is valuable for investors and analysts in evaluating the company’s financial health and performance.

In conclusion, the EV-EBITDA ratio serves as a significant metric for assessing a company’s value and financial standing in the market. It is recommended to consider multiple valuation multiples, including the P/E Ratio, to gain a comprehensive understanding of a company’s investment potential.

Article Source
https://www.gurufocus.com/term/enterprise-value-to-ebitda/CTXS