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Helmerich & Payne, Inc. (NYSE:HP)
EV/EBITDA
6.81 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Helmerich & Payne, Inc.'s enterprise value is $11,322 Mil. Helmerich & Payne, Inc.'s earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,606 Mil. Therefore, Helmerich & Payne, Inc.'s EV/EBITDA ratio for today is 6.81.

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, Helmerich & Payne, Inc.'s stock price is $108.88. Helmerich & Payne, Inc.'s earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $6.92. Therefore, Helmerich & Payne, Inc.'s P/E Ratio for today is 15.80.

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


Definition

Helmerich & Payne, Inc.'s EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=11321.968/1606.185
=7.05

Helmerich & Payne, Inc.'s current Enterprise Value is $11,322 Mil.
Helmerich & Payne, Inc.'s Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 345.771 (Mar. 2013 ) + 510.246 (Jun. 2013 ) + 365.792 (Sep. 2013 ) + 384.376 (Dec. 2013 ) = $1,606 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.

Helmerich & Payne, Inc.'s P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=108.88/6.915
=15.75

Helmerich & Payne, Inc.'s share price for today is $108.88.
Helmerich & Payne, Inc.'s Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 1.39 (Mar. 2013 ) + 2.46 (Jun. 2013 ) + 1.475 (Sep. 2013 ) + 1.59 (Dec. 2013 ) = $6.92.

* 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.

Helmerich & Payne, Inc. Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
ev2ebitda 13.739.394.634.435.305.496.384.253.984.50

Helmerich & Payne, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 4.255.755.073.923.984.454.714.094.505.41
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