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Medco Health Solutions Inc. (MHS) | Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

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Medco Health Solutions Inc., EBITDA calculation

USD $ in thousands

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  12 months ended Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007
chart Net income
chart Add: Interest expense
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
chart Add: Depreciation
chart Add: Amortization of intangibles
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Medco Health Solutions Inc.'s EBITDA increased from 2009 to 2010 and from 2010 to 2011.

EV to EBITDA Ratio, Current

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Medco Health Solutions Inc., current EV/EBITDA

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  Medco Health Solutions Inc. Health Care
Selected Financial Data (USD $ in thousands)
Enterprise value (EV)  
Earnings before interest, tax, depreciation and amortization (EBITDA)  
Ratio
EV/EBITDA

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

EV to EBITDA Ratio, Historical

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Medco Health Solutions Inc., EV/EBITDA calculation

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    Dec 31, 2011 Dec 25, 2010 Dec 26, 2009 Dec 27, 2008 Dec 29, 2007
  Selected Financial Data (USD $ in thousands)
chart Enterprise value (EV)
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
  EV/EBITDA, Comparison to Industry
chart Medco Health Solutions Inc.1
  Industry, Health Care

2011 Calculations

1 EV/EBITDA = EV ÷ EBITDA
= ÷ =

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Medco Health Solutions Inc.'s EV/EBITDA ratio declined from 2009 to 2010 and from 2010 to 2011.

May 23, 2012

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