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HP Inc (NYSE:HPQ)
EV/EBITDA
3.10 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, HP Inc's enterprise value is $23,522 Mil. HP Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2016 was $7,591 Mil. Therefore, HP Inc's EV/EBITDA ratio for today is 3.10.

HPQ' s EV/EBITDA Range Over the Past 10 Years
Min: -5.8   Max: 28.7
Current: 3.1

-5.8
28.7

During the past 13 years, the highest EV/EBITDA Ratio of HP Inc was 28.70. The lowest was -5.80. And the median was 3.50.

HPQ's EV/EBITDA is ranked higher than
91% of the 1781 Companies
in the Global Computer Systems industry.

( Industry Median: 9.41 vs. HPQ: 3.10 )

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, HP Inc's stock price is $11.79. HP Inc's earnings per share for the trailing twelve months (TTM) ended in Jan. 2016 was $2.08. Therefore, HP Inc's P/E Ratio for today is 5.67.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=23522.466/7591
=3.10

HP Inc's current Enterprise Value is $23,522 Mil.
HP Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2016 was 2434 (Apr. 2015 ) + 2235 (Jul. 2015 ) + 1915 (Oct. 2015 ) + 1007 (Jan. 2016 ) = $7,591 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=11.79/2.078
=5.67

HP Inc's share price for today is $11.79.
HP Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2016 was 0.55 (Apr. 2015 ) + 0.47 (Jul. 2015 ) + 0.728 (Oct. 2015 ) + 0.33 (Jan. 2016 ) = $2.08.

* 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.

HP Inc Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
ev2ebitda 4.134.613.593.603.303.21-4.972.723.023.40

HP Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
ev2ebitda 2.722.842.983.103.023.453.353.443.402.62
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