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Hewlett-Packard Co (NYSE:HPQ)
EV/EBIT
9.35 (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 $68,938 Mil. Hewlett-Packard Co's operating income for the trailing twelve months (TTM) ended in Jan. 2014 was $7,376 Mil. Therefore, Hewlett-Packard Co's EV/EBIT ratio for today is 9.35.

HPQ' s 10-Year EV/EBIT Range
Min: 4.9   Max: 28.8
Current: 9.35

4.9
28.8

During the past 13 years, the highest EV/EBIT Ratio of Hewlett-Packard Co was 28.80. The lowest was 4.90. And the median was 12.10.

HPQ's EV/EBITis ranked higher than
81% of the 1938 Companies
in the Global Computer Systems industry.

( Industry Median: 15.81 vs. HPQ: 9.35 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Hewlett-Packard Co's enterprise value for the quarter that ended in Jan. 2014 was $63,893 Mil. Hewlett-Packard Co's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was $7,376 Mil. Hewlett-Packard Co's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jan. 2014 was 11.55%.


Definition

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

EV/EBIT=Enterprise Value (Today)/Operating Income (TTM)
=68938.208/7376
=9.35

Hewlett-Packard Co's current Enterprise Value is $68,938 Mil.
Hewlett-Packard Co's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 1601 (Apr. 2013 ) + 1855 (Jul. 2013 ) + 1923 (Oct. 2013 ) + 1997 (Jan. 2014 ) = $7,376 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 Jan. 2014 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Jan. 2014 )=Operating Income (TTM)/Enterprise Value (Q: Jan. 2014 )
=7376/63893
=11.54 %

Hewlett-Packard Co's Enterprise Value for the quarter that ended in Jan. 2014 was $63,893 Mil.
Hewlett-Packard Co's Operating Income for the trailing twelve months (TTM) ended in Jan. 2014 was 1601 (Apr. 2013 ) + 1855 (Jul. 2013 ) + 1923 (Oct. 2013 ) + 1997 (Jan. 2014 ) = $7,376 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

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebit 11.9520.4014.3614.889.5611.349.097.850.008.08

Hewlett-Packard Co Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebit 7.859.439.390.000.000.000.000.008.088.66
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