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Heartland Payment Systems Inc (NYSE:HPY)
EV/EBITDA
14.86 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Heartland Payment Systems Inc's enterprise value is $2,444 Mil. Heartland Payment Systems Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2014 was $164 Mil. Therefore, Heartland Payment Systems Inc's EV/EBITDA ratio for today is 14.86.

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, Heartland Payment Systems Inc's stock price is $54.40. Heartland Payment Systems Inc's earnings per share for the trailing twelve months (TTM) ended in Sep. 2014 was $1.92. Therefore, Heartland Payment Systems Inc's P/E Ratio for today is 28.36.

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


Definition

Heartland Payment Systems Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=2444.215/164.482
=14.86

Heartland Payment Systems Inc's current Enterprise Value is $2,444 Mil.
Heartland Payment Systems Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2014 was 40.298 (Dec. 2013 ) + 36.126 (Mar. 2014 ) + 41.371 (Jun. 2014 ) + 46.687 (Sep. 2014 ) = $164 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.

Heartland Payment Systems Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=54.40/1.918
=28.36

Heartland Payment Systems Inc's share price for today is $54.40.
Heartland Payment Systems Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2014 was 0.458 (Dec. 2013 ) + 0.42 (Mar. 2014 ) + 0.48 (Jun. 2014 ) + 0.56 (Sep. 2014 ) = $1.92.

* 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.

Heartland Payment Systems Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 0.0011.4911.949.114.80-2,165.664.816.688.7111.91

Heartland Payment Systems Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
ev2ebitda 8.648.958.719.3610.0310.0411.919.9010.1113.38
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