Switch to:
Hewlett-Packard Co (NYSE:HPQ)
EV/EBIT
10.51 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its EBIT. As of today, Hewlett-Packard Co's enterprise value is $75,980 Mil. Hewlett-Packard Co's operating income for the trailing twelve months (TTM) ended in Oct. 2014 was $7,185 Mil. Therefore, Hewlett-Packard Co's EV/EBIT ratio for today is 10.51.

HPQ' s 10-Year EV/EBIT Range
Min: -50.4   Max: 24.2
Current: 10.51

-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 10.70.

HPQ's EV/EBITis ranked higher than
83% of the 2783 Companies
in the Global Computer Systems industry.

( Industry Median: 23.53 vs. HPQ: 10.51 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hewlett-Packard Co's enterprise value for the quarter that ended in Oct. 2014 was $71,755 Mil. Hewlett-Packard Co's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was $7,185 Mil. Hewlett-Packard Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Oct. 2014 was 0.00%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=75980.160/7185
=10.57

Hewlett-Packard Co's current Enterprise Value is $75,980 Mil.
Hewlett-Packard Co's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 1997 (Jan. 2014 ) + 1822 (Apr. 2014 ) + 1458 (Jul. 2014 ) + 1908 (Oct. 2014 ) = $7,185 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 Oct. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Oct. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Oct. 2014 )
=7185/71754.72
=10.01 %

Hewlett-Packard Co's Enterprise Value for the quarter that ended in Oct. 2014 was $71,755 Mil.
Hewlett-Packard Co's Operating Income for the trailing twelve months (TTM) ended in Oct. 2014 was 1997 (Jan. 2014 ) + 1822 (Apr. 2014 ) + 1458 (Jul. 2014 ) + 1908 (Oct. 2014 ) = $7,185 Mil.

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


Related Terms

Enterprise Value, Operating Income, Earnings Yield (Joel Greenblatt)


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 20.4014.3614.889.5611.349.097.85-4.048.040.00

Hewlett-Packard Co Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebit -14.98-4.04-4.25-4.48-47.988.048.669.2010.020.00
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK