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HDFC Bank Ltd (NYSE:HDB)
EV/EBITDA
9.03 (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 $24,831 Mil. HDFC Bank Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2015 was $2,750 Mil. Therefore, HDFC Bank Ltd's EV/EBITDA ratio for today is 9.03.

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 $62.94. HDFC Bank Ltd's earnings per share for the trailing twelve months (TTM) ended in Jun. 2015 was $1.88. Therefore, HDFC Bank Ltd's P/E Ratio for today is 33.40.

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)
=24830.812/2749.76845506
=9.03

HDFC Bank Ltd's current Enterprise Value is $24,831 Mil.
HDFC Bank Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2015 was 478.600141878 (Sep. 2014 ) + 762.04448938 (Dec. 2014 ) + 906.471619145 (Mar. 2015 ) + 602.652204657 (Jun. 2015 ) = $2,750 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)
=62.94/1.88470461328
=33.40

HDFC Bank Ltd's share price for today is $62.94.
HDFC Bank Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2015 was 0.419228343974 (Sep. 2014 ) + 0.545392786463 (Dec. 2014 ) + 0.487352053841 (Mar. 2015 ) + 0.432731429001 (Jun. 2015 ) = $1.88.

* 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
ev2ebitda 0.00113.59125.8921.5620.2818.7015.9117.0114.7515.50

HDFC Bank Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
ev2ebitda 17.016.9814.075.0614.757.6117.927.8015.505.65
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