Switch to:
HP Inc (NYSE:HPQ)
EV/EBIT
5.91 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, HP Inc's enterprise value is $22,971 Mil. HP Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was $3,889 Mil. Therefore, HP Inc's EV/EBIT ratio for today is 5.91.

HPQ' s EV/EBIT Range Over the Past 10 Years
Min: -27.7   Max: 10
Current: 5.9

-27.7
10

During the past 13 years, the highest EV/EBIT Ratio of HP Inc was 10.00. The lowest was -27.70. And the median was 5.10.

HPQ's EV/EBIT is ranked higher than
81% of the 1622 Companies
in the Global Computer Systems industry.

( Industry Median: 12.46 vs. HPQ: 5.90 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). HP Inc's enterprise value for the quarter that ended in Apr. 2016 was $23,448 Mil. HP Inc's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was $3,889 Mil. HP Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2016 was 16.59%.


Definition

HP Inc's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=22971.233/3889
=5.91

HP Inc's current Enterprise Value is $22,971 Mil.
HP Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was 1212 (Jul. 2015 ) + 908 (Oct. 2015 ) + 928 (Jan. 2016 ) + 841 (Apr. 2016 ) = $3,889 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).

HP Inc's Earnings Yield (Joel Greenblatt) for the quarter that ended in Apr. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Apr. 2016 )=EBIT (TTM)/Enterprise Value (Q: Apr. 2016 )
=3889/23448.2538
=16.59 %

HP Inc's Enterprise Value for the quarter that ended in Apr. 2016 was $23,448 Mil.
HP Inc's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Apr. 2016 was 1212 (Jul. 2015 ) + 908 (Oct. 2015 ) + 928 (Jan. 2016 ) + 841 (Apr. 2016 ) = $3,889 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.

HP Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ev2ebit 5.615.904.735.304.694.86-2.694.484.847.01

HP Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ev2ebit 4.594.744.994.845.786.166.447.014.926.03
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)
FEEDBACK