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1&1 Drillisch AG EV/EBITDA

What is the EV/EBITDA of 1&1 Drillisch AG?

The EV/EBITDA of 1&1 Drillisch AG is 7.78

What is the definition of EV/EBITDA?



EV/EBITDA is enterprise value divided by earnings before interest, tax, depreciation, and amortization. It is a measure of how expensive a stock is and is more frequently valid for comparisons across companies than the price to earnings ratio. It measures the price (in the form of enterprise value) an investor pays for the benefit of the company’s cash flow (in the form of EBITDA).

= enterprise value / EBITDA

Price to earnings ratios are impacted by a company's choice of capital structure - companies which raise money via debt will have lower P/Es (and therefore look cheaper) than companies that raise an equivalent amount of money by issuing shares, even though the two companies might have equivalent enterprise values. A sample case is when a company with debt were to raise money by issuing shares of stock, and then used the money to pay off the debt, this company's P/E ratio would shoot up because of the increased number of shares - although nothing about the fundamental value of the business has changed. EV / EBITDA is unaffected by capital structure as enterprise value includes the value of debt, and EBITDA is available to all investors (debt and equity) as it excludes interest payments on that debt. It is ideal for analysts and potential investors looking to compare companies within the same industry.

EV/EBITDA of companies in the Communication Services sector on XETRA compared to 1&1 Drillisch AG

What does 1&1 Drillisch AG do?

1&1 Drillisch AG, together with its subsidiaries, operates as a telecommunications provider in Germany. The company operates through Access, 5G, and Miscellaneous segments. It provides its customers with a portfolio of services and products from the fields of broadband and mobile internet. The company's wireless access and landline products include related applications, such as home networks, online storage, telephony, and video on demand or IPTV. It also offers custom software solutions, as well as maintenance and support services. In addition, the company provides wireless network services using the networks of Telefónica and Vodafone; and 5G wireless network services. It operates under the brand names of 1&1, yourfone, smartmobil.de, winSIM, PremiumSIM, simply, maxim, DeutschlandSIM, sim.de, eteleon, discoTEL, M2M-Mobil, handyvertrag.de, and Galaxy EXPERTE brands. The company serves approximately 9.9 million wireless and 4.3 million broadband customers. 1&1 Drillisch AG was founded in 1988 and is headquartered in Maintal, Germany.

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