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Hormel Foods Corporation (NYSE:HRL)
EV/EBITDA
12.52 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Hormel Foods Corporation's enterprise value is $12,224 Mil. Hormel Foods Corporation's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Jan. 2014 was $976 Mil. Therefore, Hormel Foods Corporation's EV/EBITDA ratio for today is 12.52.

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, Hormel Foods Corporation's stock price is $47.78. Hormel Foods Corporation's earnings per share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.03. Therefore, Hormel Foods Corporation's P/E Ratio for today is 23.50.

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


Definition

Hormel Foods Corporation's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=12223.608/976.076
=12.52

Hormel Foods Corporation's current Enterprise Value is $12,224 Mil.
Hormel Foods Corporation's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Jan. 2014 was 219.362 (Apr. 2013 ) + 212.023 (Jul. 2013 ) + 274.566 (Oct. 2013 ) + 270.125 (Jan. 2014 ) = $976 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.

Hormel Foods Corporation's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=47.78/2.032
=23.51

Hormel Foods Corporation's share price for today is $47.78.
Hormel Foods Corporation's Earnings Per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.46 (Apr. 2013 ) + 0.42 (Jul. 2013 ) + 0.582 (Oct. 2013 ) + 0.57 (Jan. 2014 ) = $2.03.

* 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.

Hormel Foods Corporation Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
ev2ebitda 8.118.338.938.356.667.087.658.658.1512.07

Hormel Foods Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ev2ebitda 8.658.738.628.038.159.5612.3412.4012.0711.89
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