Switch to:
HP Inc (NYSE:HPQ)
EV/EBITDA
4.15 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, HP Inc's enterprise value is $27,258 Mil. HP Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jul. 2016 was $6,569 Mil. Therefore, HP Inc's EV/EBITDA ratio for today is 4.15.

HPQ' s EV/EBITDA Range Over the Past 10 Years
Min: -5.8   Max: 28.7
Current: 6.79

-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 3.60.

HPQ's EV/EBITDA is ranked higher than
72% of the 1772 Companies
in the Global Computer Systems industry.

( Industry Median: 10.61 vs. HPQ: 6.79 )

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 $15.55. HP Inc's earnings per share for the trailing twelve months (TTM) ended in Jul. 2016 was $1.87. Therefore, HP Inc's P/E Ratio for today is 8.32.

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)
=27258.110/6569
=4.15

HP Inc's current Enterprise Value is $27,258 Mil.
HP Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jul. 2016 was 3398 (Oct. 2015 ) + 1007 (Jan. 2016 ) + 926 (Apr. 2016 ) + 1238 (Jul. 2016 ) = $6,569 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=15.55/1.87
=8.32

HP Inc's share price for today is $15.55.
HP Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Jul. 2016 was 0.73 (Oct. 2015 ) + 0.33 (Jan. 2016 ) + 0.36 (Apr. 2016 ) + 0.45 (Jul. 2016 ) = $1.87.

* 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.

HP Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
ev2ebitda 4.613.593.603.273.21-4.973.163.523.156.47

HP Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
ev2ebitda 3.623.524.104.314.733.153.113.673.836.47
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK