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

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, HP Inc's enterprise value is $24,066 Mil. HP Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2015 was $9,532 Mil. Therefore, HP Inc's EV/EBITDA ratio for today is 2.52.

HPQ' s EV/EBITDA Range Over the Past 10 Years
Min: -5.8   Max: 27.7
Current: 2.56

-5.8
27.7

During the past 13 years, the highest EV/EBITDA Ratio of HP Inc was 27.70. The lowest was -5.80. And the median was 3.40.

HPQ's EV/EBITDA is ranked higher than
93% of the 2226 Companies
in the Global Computer Systems industry.

( Industry Median: 9.22 vs. HPQ: 2.56 )

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 $9.37. HP Inc's earnings per share for the trailing twelve months (TTM) ended in Oct. 2015 was $2.48. Therefore, HP Inc's P/E Ratio for today is 3.78.

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)
=24065.760/9532
=2.52

HP Inc's current Enterprise Value is $24,066 Mil.
HP Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2015 was 2948 (Jan. 2015 ) + 2434 (Apr. 2015 ) + 2235 (Jul. 2015 ) + 1915 (Oct. 2015 ) = $9,532 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)
=9.37/2.48
=3.78

HP Inc's share price for today is $9.37.
HP Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2015 was 0.73 (Jan. 2015 ) + 0.55 (Apr. 2015 ) + 0.47 (Jul. 2015 ) + 0.73 (Oct. 2015 ) = $2.48.

* 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 4.134.613.593.613.303.21-5.012.713.023.12

HP Inc Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
ev2ebitda 9.992.712.832.983.103.023.213.103.183.12
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