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Hormel Foods Corp (NYSE:HRL)
EV/EBITDA
12.69 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Hormel Foods Corp's enterprise value is $13,588 Mil. Hormel Foods Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Oct. 2014 was $1,065 Mil. Therefore, Hormel Foods Corp's EV/EBITDA ratio for today is 12.69.

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 Corp's stock price is $52.61. Hormel Foods Corp's earnings per share for the trailing twelve months (TTM) ended in Oct. 2014 was $2.23. Therefore, Hormel Foods Corp's P/E Ratio for today is 24.10.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=13587.711/1064.9
=12.76

Hormel Foods Corp's current Enterprise Value is $13,588 Mil.
Hormel Foods Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Oct. 2014 was 270.125 (Jan. 2014 ) + 248.174 (Apr. 2014 ) + 249.557 (Jul. 2014 ) + 297.044 (Oct. 2014 ) = $1,065 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 Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=52.61/2.23
=23.59

Hormel Foods Corp's share price for today is $52.61.
Hormel Foods Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Oct. 2014 was 0.57 (Jan. 2014 ) + 0.52 (Apr. 2014 ) + 0.51 (Jul. 2014 ) + 0.63 (Oct. 2014 ) = $2.23.

* 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 Corp Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
ev2ebitda 8.358.938.356.387.117.658.668.1512.050.00

Hormel Foods Corp Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
ev2ebitda 8.038.159.5612.3412.4012.0511.8912.2811.450.00
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