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Hovnanian Enterprises Inc (NYSE:HOV)
EV/EBITDA
20.73 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Hovnanian Enterprises Inc's enterprise value is $2,423 Mil. Hovnanian Enterprises Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2015 was $117 Mil. Therefore, Hovnanian Enterprises Inc's EV/EBITDA ratio for today is 20.73.

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, Hovnanian Enterprises Inc's stock price is $3.20. Hovnanian Enterprises Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2015 was $1.49. Therefore, Hovnanian Enterprises Inc's P/E Ratio for today is 2.15.

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


Definition

Hovnanian Enterprises Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2423.167/116.919
=20.73

Hovnanian Enterprises Inc's current Enterprise Value is $2,423 Mil.
Hovnanian Enterprises Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2015 was 17.027 (Apr. 2014 ) + 36.117 (Jul. 2014 ) + 57.535 (Oct. 2014 ) + 6.24 (Jan. 2015 ) = $117 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.

Hovnanian Enterprises Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=3.20/1.488
=2.15

Hovnanian Enterprises Inc's share price for today is $3.20.
Hovnanian Enterprises Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2015 was -0.05 (Apr. 2014 ) + 0.11 (Jul. 2014 ) + 1.528 (Oct. 2014 ) + -0.1 (Jan. 2015 ) = $1.49.

* 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.

Hovnanian Enterprises Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebitda 5.2514.56-7.15-2.15-3.34-9.53-9.33-638.4618.7520.52

Hovnanian Enterprises Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebitda -638.46-747.15-261.421,349.6118.7522.1522.0121.1620.5221.03
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