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HDFC Bank Ltd (NYSE:HDB)
EV/EBITDA
9.27 (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 $20,392 Mil. HDFC Bank Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $2,201 Mil. Therefore, HDFC Bank Ltd's EV/EBITDA ratio for today is 9.27.

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 $50.69. HDFC Bank Ltd's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.78. Therefore, HDFC Bank Ltd's P/E Ratio for today is 28.53.

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)
=20392.409/2200.76755941
=9.27

HDFC Bank Ltd's current Enterprise Value is $20,392 Mil.
HDFC Bank Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 629.009399621 (Dec. 2013 ) + 261.582004332 (Mar. 2014 ) + 643.45201526 (Jun. 2014 ) + 666.724140196 (Sep. 2014 ) = $2,201 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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)
=50.69/1.77688675889
=28.53

HDFC Bank Ltd's share price for today is $50.69.
HDFC Bank Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.470789988837 (Dec. 2013 ) + 0.361291592833 (Mar. 2014 ) + 0.462027530814 (Jun. 2014 ) + 0.48277764641 (Sep. 2014 ) = $1.78.

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

HDFC Bank Ltd Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
ev2ebitda 82.070.00113.59125.8921.5620.2816.7316.6516.4114.75

HDFC Bank Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 17.4516.967.6516.416.9814.075.0614.756.446.45
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