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GuruFocus has detected 4 Warning Signs with HDFC Bank Ltd $HDB.
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HDFC Bank Ltd (NYSE:HDB)
EV/EBITDA
19.14 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, HDFC Bank Ltd's enterprise value is $54,964 Mil. HDFC Bank Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $2,872 Mil. Therefore, HDFC Bank Ltd's EV/EBITDA ratio for today is 19.14.

HDB' s EV/EBITDA Range Over the Past 10 Years
Min: 4.3   Max: 160.9
Current: 19.07

4.3
160.9

During the past 13 years, the highest EV/EBITDA Ratio of HDFC Bank Ltd was 160.90. The lowest was 4.30. And the median was 17.90.

HDB's EV/EBITDA is ranked lower than
74% of the 1295 Companies
in the Global Banks - Regional - Asia industry.

( Industry Median: 11.35 vs. HDB: 19.07 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, HDFC Bank Ltd's stock price is $70.40. HDFC Bank Ltd's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $2.25. Therefore, HDFC Bank Ltd's P/E Ratio for today is 31.27.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

HDFC Bank Ltd's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=54964.332/2872.31745636
=19.14

HDFC Bank Ltd's current Enterprise Value is $54,964 Mil.
HDFC Bank Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 438.032677091 (Mar. 2016 ) + 865.107670351 (Jun. 2016 ) + 594.436233583 (Sep. 2016 ) + 974.740875331 (Dec. 2016 ) = $2,872 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

HDFC Bank Ltd's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=70.40/2.25134311357
=31.27

HDFC Bank Ltd's share price for today is $70.40.
HDFC Bank Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.50814086819 (Mar. 2016 ) + 0.561952263791 (Jun. 2016 ) + 0.517584068064 (Sep. 2016 ) + 0.663665913529 (Dec. 2016 ) = $2.25.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

HDFC Bank Ltd Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
ev2ebitda 113.59125.8914.6420.2816.7316.6516.4114.7517.0915.94

HDFC Bank Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 7.3115.9517.0917.2916.6616.3515.9416.6920.1216.80
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