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Hewlett-Packard Co (NYSE:HPQ)
EV/EBIT
8.48 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Hewlett-Packard Co's enterprise value is $56,927 Mil. Hewlett-Packard Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was $6,717 Mil. Therefore, Hewlett-Packard Co's EV/EBIT ratio for today is 8.48.

HPQ' s 10-Year EV/EBIT Range
Min: -50.4   Max: 24.2
Current: 8.45

-50.4
24.2

During the past 13 years, the highest EV/EBIT Ratio of Hewlett-Packard Co was 24.20. The lowest was -50.40. And the median was 10.20.

HPQ's EV/EBITis ranked higher than
67% of the 1563 Companies
in the Global Computer Systems industry.

( Industry Median: 12.17 vs. HPQ: 8.45 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hewlett-Packard Co's enterprise value for the quarter that ended in Apr. 2015 was $66,268 Mil. Hewlett-Packard Co's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was $6,717 Mil. Hewlett-Packard Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2015 was 10.14%.


Definition

Hewlett-Packard Co's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=56927.394/6717
=8.48

Hewlett-Packard Co's current Enterprise Value is $56,927 Mil.
Hewlett-Packard Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was 1458 (Jul. 2014 ) + 1908 (Oct. 2014 ) + 1920 (Jan. 2015 ) + 1431 (Apr. 2015 ) = $6,717 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Hewlett-Packard Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2015 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2015 )=EBIT (TTM)/Enterprise Value (Q: Apr. 2015 )
=6717/66267.79
=10.14 %

Hewlett-Packard Co's Enterprise Value for the quarter that ended in Apr. 2015 was $66,268 Mil.
Hewlett-Packard Co's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2015 was 1458 (Jul. 2014 ) + 1908 (Oct. 2014 ) + 1920 (Jan. 2015 ) + 1431 (Apr. 2015 ) = $6,717 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Hewlett-Packard Co Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebit 20.3814.4213.409.5511.349.097.85-4.038.059.85

Hewlett-Packard Co Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
ev2ebit -4.24-4.48-47.648.058.679.2010.029.8510.189.87
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