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Hewlett-Packard Co (NYSE:HPQ)
EV/EBITDA
5.71 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Hewlett-Packard Co's enterprise value is $64,719 Mil. Hewlett-Packard Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2015 was $11,339 Mil. Therefore, Hewlett-Packard Co's EV/EBITDA ratio for today is 5.71.

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, Hewlett-Packard Co's stock price is $32.01. Hewlett-Packard Co's earnings per share for the trailing twelve months (TTM) ended in Jan. 2015 was $2.61. Therefore, Hewlett-Packard Co's P/E Ratio for today is 12.28.

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


Definition

Hewlett-Packard Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=64718.588/11339
=5.71

Hewlett-Packard Co's current Enterprise Value is $64,719 Mil.
Hewlett-Packard Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2015 was 2895 (Apr. 2014 ) + 2513 (Jul. 2014 ) + 2983 (Oct. 2014 ) + 2948 (Jan. 2015 ) = $11,339 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.

Hewlett-Packard Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=32.01/2.607
=12.28

Hewlett-Packard Co's share price for today is $32.01.
Hewlett-Packard Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2015 was 0.66 (Apr. 2014 ) + 0.52 (Jul. 2014 ) + 0.697 (Oct. 2014 ) + 0.73 (Jan. 2015 ) = $2.61.

* 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.

Hewlett-Packard Co Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebitda 12.1810.5710.457.247.716.405.18-7.444.886.15

Hewlett-Packard Co Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
ev2ebitda -7.44-7.50-7.5118.054.885.355.796.246.156.38
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