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Hewlett-Packard Co (NYSE:HPQ)
EV/EBITDA
5.92 (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 $68,938 Mil. Hewlett-Packard Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $11,918 Mil. Therefore, Hewlett-Packard Co's EV/EBITDA ratio for today is 5.92.

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 $31.93. Hewlett-Packard Co's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.73. Therefore, Hewlett-Packard Co's P/E Ratio for today is 11.80.

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)
=68938.208/11918
=5.78

Hewlett-Packard Co's current Enterprise Value is $68,938 Mil.
Hewlett-Packard Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 2762 (Apr. 2013 ) + 3051 (Jul. 2013 ) + 2991 (Oct. 2013 ) + 3114 (Jan. 2014 ) = $11,918 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)
=31.93/2.727
=11.71

Hewlett-Packard Co's share price for today is $31.93.
Hewlett-Packard Co's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.55 (Apr. 2013 ) + 0.71 (Jul. 2013 ) + 0.727 (Oct. 2013 ) + 0.74 (Jan. 2014 ) = $2.73.

* 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

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 7.6312.1810.5710.457.247.716.405.180.004.92

Hewlett-Packard Co Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 5.185.885.6442.340.000.000.0017.854.925.36
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