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Hovnanian Enterprises Inc (NYSE:HOV)
EV/EBITDA
21.64 (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 $2,328 Mil. Hovnanian Enterprises Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $108 Mil. Therefore, Hovnanian Enterprises Inc's EV/EBITDA ratio for today is 21.64.

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 $4.11. Hovnanian Enterprises Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $1.84. Therefore, Hovnanian Enterprises Inc's P/E Ratio for today is 2.23.

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)
=2327.977/107.558
=21.64

Hovnanian Enterprises Inc's current Enterprise Value is $2,328 Mil.
Hovnanian Enterprises Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was -0.557 (Jan. 2014 ) + 16.174 (Apr. 2014 ) + 35.252 (Jul. 2014 ) + 56.689 (Oct. 2014 ) = $108 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)
=4.11/1.84
=2.23

Hovnanian Enterprises Inc's share price for today is $4.11.
Hovnanian Enterprises Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was -0.17 (Jan. 2014 ) + -0.05 (Apr. 2014 ) + 0.11 (Jul. 2014 ) + 1.95 (Oct. 2014 ) = $1.84.

* 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 5.2514.56-7.15-2.15-3.34-9.53-9.33745.9018.7521.20

Hovnanian Enterprises Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda -145.20745.901,623.06-397.73720.3718.7522.0822.0621.6621.20
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