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GuruFocus has detected 2 Warning Signs with Hovnanian Enterprises Inc $HOV.
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Hovnanian Enterprises Inc (NYSE:HOV)
EV-to-EBITDA
17.71 (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 $1,984 Mil. Hovnanian Enterprises Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2017 was $112 Mil. Therefore, Hovnanian Enterprises Inc's EV/EBITDA ratio for today is 17.71.

HOV' s EV-to-EBITDA Range Over the Past 10 Years
Min: -426.6   Max: 1751.5
Current: 17.73

-426.6
1751.5

During the past 13 years, the highest EV/EBITDA Ratio of Hovnanian Enterprises Inc was 1751.50. The lowest was -426.60. And the median was -1.95.

HOV's EV-to-EBITDA is ranked lower than
75% of the 657 Companies
in the Global Residential Construction industry.

( Industry Median: 9.70 vs. HOV: 17.73 )

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 $2.36. Hovnanian Enterprises Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2017 was $0.09. Therefore, Hovnanian Enterprises Inc's P/E Ratio for today is 27.44.

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)
=1984.167/112.035
=17.71

Hovnanian Enterprises Inc's current Enterprise Value is $1,984 Mil.
Hovnanian Enterprises Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2017 was 7.344 (Apr. 2016 ) + 25.131 (Jul. 2016 ) + 55.597 (Oct. 2016 ) + 23.963 (Jan. 2017 ) = $112 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=2.36/0.086
=27.44

Hovnanian Enterprises Inc's share price for today is $2.36.
Hovnanian Enterprises Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2017 was -0.06 (Apr. 2016 ) + -0.003 (Jul. 2016 ) + 0.15 (Oct. 2016 ) + -0.001 (Jan. 2017 ) = $0.09.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

Hovnanian Enterprises Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebitda -7.14-2.15-3.34-9.53-9.33745.9018.7520.5831.9519.67

Hovnanian Enterprises Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
ev2ebitda 20.5821.0326.1033.1331.9529.1725.4420.6119.6717.82
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