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H&R Block Inc (NYSE:HRB)
EV/EBITDA
8.07 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, H&R Block Inc's enterprise value is $7,192 Mil. H&R Block Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2014 was $879 Mil. Therefore, H&R Block Inc's EV/EBITDA ratio for today is 8.07.

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, H&R Block Inc's stock price is $32.43. H&R Block Inc's earnings per share for the trailing twelve months (TTM) ended in Apr. 2014 was $1.63. Therefore, H&R Block Inc's P/E Ratio for today is 19.90.

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


Definition

H&R Block Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=7191.932/878.815
=8.18

H&R Block Inc's current Enterprise Value is $7,192 Mil.
H&R Block Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2014 was -179.555 (Jul. 2013 ) + -180.616 (Oct. 2013 ) + -338.215 (Jan. 2014 ) + 1577.201 (Apr. 2014 ) = $879 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.

H&R Block Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=32.43/1.625
=19.96

H&R Block Inc's share price for today is $32.43.
H&R Block Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Apr. 2014 was -0.42 (Jul. 2013 ) + -0.39 (Oct. 2013 ) + -0.78 (Jan. 2014 ) + 3.215 (Apr. 2014 ) = $1.63.

* 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.

H&R Block Inc Annual Data

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
ev2ebitda 10.938.0610.1910.134.916.747.506.308.526.93

H&R Block Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
ev2ebitda 9.666.306.337.8710.878.5210.6510.2919.766.93
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