The EV/EBITDA of Æterna Zentaris, Inc. is 2.63
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.
Aeterna Zentaris Inc., a specialty biopharmaceutical company, engages in developing and commercializing therapeutics and diagnostic tests. Its lead product is macimorelin, an orally available peptidomimetic ghrelin receptor (GHSR-1a) agonist that stimulates the secretion of growth hormone by binding to the GHSR-1a for the diagnosis of adult growth hormone deficiency and childhood-onset growth hormone deficiency, as well as oncology indications. The company markets macimorelin under the Macrilen brand name. Aeterna Zentaris Inc. has a license agreement with University Wuerzburg to research, develop, manufacture, and sell a potential COVID-19 vaccine; development, manufacture, and commercialization of the treatment for neuromyelitis optica spectrum disorder; and to develop human 3D intestinal tissue models to study infection biology; and for pre-clinical development towards the potential treatment of Parkinson's disease. It also has a license agreement with Consilient Health Ltd., Novo Nordisk Novo Nordisk Health Care AG, and NK MEDITECH Ltd. for the development and commercialization of macimorelin in the United States and Canada, as well as The University of Sheffield, the United Kingdom for the research, development, manufacture, and commercialization of parathyroid hormone fusion polypeptides for the treatment of primary hypoparathyroidism. Aeterna Zentaris Inc. was incorporated in 1990 and is headquartered in Summerville, South Carolina.