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HDFC Bank Ltd (NYSE:HDB)
EV/EBITDA
19.98 (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 $41,043 Mil. HDFC Bank Ltd's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jun. 2014 was $1,993 Mil. Therefore, HDFC Bank Ltd's EV/EBITDA ratio for today is 19.98.

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 $49.55. HDFC Bank Ltd's earnings per share for the trailing twelve months (TTM) ended in Jun. 2014 was $1.62. Therefore, HDFC Bank Ltd's P/E Ratio for today is 30.20.

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)
=41042.890/1993.48699075
=20.59

HDFC Bank Ltd's current Enterprise Value is $41,043 Mil.
HDFC Bank Ltd's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jun. 2014 was 394.950167192 (Sep. 2013 ) + 626.021640421 (Dec. 2013 ) + 332.910217744 (Mar. 2014 ) + 639.604965389 (Jun. 2014 ) = $1,993 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)
=49.55/1.61654680066
=30.65

HDFC Bank Ltd's share price for today is $49.55.
HDFC Bank Ltd's Earnings Per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.323832094277 (Sep. 2013 ) + 0.468553762921 (Dec. 2013 ) + 0.364895767739 (Mar. 2014 ) + 0.459265175719 (Jun. 2014 ) = $1.62.

* 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 43.1431.6530.3069.8515.3320.9616.8915.4919.0117.20

HDFC Bank Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
ev2ebitda 15.4915.1816.6117.9919.0118.0514.3515.6017.2019.33
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