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Highest EV/EBITDA Ratio in the Systems Software Industry Detected in Shares of Progress Software (PRGS, CVLT, FTNT, RHT, SYMC)

By Amy Schwartz

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.

Progress Software ranks highest with a an EV/EBITDA ratio of 137.94. CommVault Systems is next with a an EV/EBITDA ratio of 124.34. Fortinet ranks third highest with a an EV/EBITDA ratio of 61.35.

Red Hat follows with a an EV/EBITDA ratio of 37.78, and Symantec rounds out the top five with a an EV/EBITDA ratio of 22.06.

SmarTrend recommended that its subscribers protect gains by selling shares of Symantec on May 18th, 2017 by issuing a Downtrend alert when the shares were trading at $29.65. Since that call, shares of Symantec have fallen 4.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio progress software commvault systems fortinet red hat Symantec