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Servicenow Inc has the Highest EV/EBITDA Ratio in the Systems Software Industry (NOW, CVLT, FTNT, RHT, QLYS)

By James Quinn

Below are the three companies in the Systems Software industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Servicenow Inc ranks highest with a an EV/EBITDA ratio of 1,130.94. Following is Commvault System with a an EV/EBITDA ratio of 163.08. Fortinet Inc ranks third highest with a an EV/EBITDA ratio of 85.48.

Red Hat Inc follows with a an EV/EBITDA ratio of 55.56, and Qualys Inc rounds out the top five with a an EV/EBITDA ratio of 51.72.

SmarTrend recommended that subscribers consider buying shares of Red Hat Inc on October 29th, 2018 as our technology indicated a new Uptrend was in progress when shares hit $170.29. Since that recommendation, shares of Red Hat Inc have risen 10.2%. We continue to monitor Red Hat Inc for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio servicenow inc commvault system Fortinet Inc :rht red hat inc qualys inc

Ticker(s): NOW CVLT FTNT QLYS