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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, HP Inc's enterprise value is $22,304 Mil. HP Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2016 was $6,083 Mil. Therefore, HP Inc's EV/EBITDA ratio for today is 3.67.

HPQ' s EV/EBITDA Range Over the Past 10 Years
Min: -5.8   Max: 28.7
Current: 3.67

-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
85% of the 1760 Companies
in the Global Computer Systems industry.

( Industry Median: 9.36 vs. HPQ: 3.67 )

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 Apr. 2016 was $1.89. Therefore, HP Inc's P/E Ratio for today is 6.24.

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)
=22304.094/6083
=3.67

HP Inc's current Enterprise Value is $22,304 Mil.
HP Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2016 was 2235 (Jul. 2015 ) + 1915 (Oct. 2015 ) + 1007 (Jan. 2016 ) + 926 (Apr. 2016 ) = $6,083 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)
=11.79/1.888
=6.24

HP Inc's share price for today is $11.79.
HP Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Apr. 2016 was 0.47 (Jul. 2015 ) + 0.728 (Oct. 2015 ) + 0.33 (Jan. 2016 ) + 0.36 (Apr. 2016 ) = $1.89.

* 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 4.134.613.593.603.303.21-4.972.723.023.58

HP Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
ev2ebitda 2.842.983.103.023.453.503.603.582.783.85
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