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8X8 INC is Among the Companies in the Application Software Industry With the Highest EV/EBITDA Ratio (EGHT, ULTI, CRM, PEGA, EPAY)

By Amy Schwartz

Below are the three companies in the Application 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.

8X8 INC ranks highest with a an EV/EBITDA ratio of 289.94. Ultimate Software is next with a an EV/EBITDA ratio of 92.07. salesforce.com ranks third highest with a an EV/EBITDA ratio of 86.13.

Pegasystems follows with a an EV/EBITDA ratio of 51.03, and Bottomline Technologies rounds out the top five with a an EV/EBITDA ratio of 45.01.

SmarTrend recommended that subscribers consider buying shares of Bottomline Technologies on May 1st, 2017 as our technology indicated a new Uptrend was in progress when shares hit $23.84. Since that recommendation, shares of Bottomline Technologies have risen 3.9%. We continue to monitor Bottomline Technologies for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio 8x8 inc ultimate software salesforce.com pegasystems bottomline technologies