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Hershey Co (NYSE:HSY)
EV/EBITDA
15.13 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Hershey Co's enterprise value is $23,173 Mil. Hershey Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2013 was $1,544 Mil. Therefore, Hershey Co's EV/EBITDA ratio for today is 15.13.

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, Hershey Co's stock price is $100.11. Hershey Co's earnings per share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.61. Therefore, Hershey Co's P/E Ratio for today is 27.70.

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


Definition

Hershey Co's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=23172.556/1543.866
=15.01

Hershey Co's current Enterprise Value is $23,173 Mil.
Hershey Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2013 was 441.273 (Mar. 2013 ) + 319.749 (Jun. 2013 ) + 423.014 (Sep. 2013 ) + 359.83 (Dec. 2013 ) = $1,544 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.

Hershey Co's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=100.11/3.61
=27.73

Hershey Co's share price for today is $100.11.
Hershey Co's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 1.062 (Mar. 2013 ) + 0.7 (Jun. 2013 ) + 1.03 (Sep. 2013 ) + 0.818 (Dec. 2013 ) = $3.61.

* 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.

Hershey Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
ev2ebitda 10.8310.908.8111.149.2410.0511.0411.8913.1014.64

Hershey Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
ev2ebitda 11.6511.8911.4613.3013.2313.1015.0915.0014.7514.64
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