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Hon Hai Precision Industry Co (LSE:HHPD) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Hon Hai Precision Industry Co's Enterprise Value for the quarter that ended in Mar. 2026 was $79,618 Mil.
Hon Hai Precision Industry Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $11,355 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hon Hai Precision Industry Co EV-to-EBIT Related Terms
Hon Hai Precision Industry Co EV-to-EBIT Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electronic Components subindustry, Hon Hai Precision Industry Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hon Hai Precision Industry Co EV-to-EBIT vs Hardware Industry
For the Hardware industry and Technology sector, Hon Hai Precision Industry Co's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Hon Hai Precision Industry Co's EV-to-EBIT falls into.
Hon Hai Precision Industry Co's current Enterprise Value is $118,295 Mil.
Hon Hai Precision Industry Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $11,355 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Hon Hai Precision Industry Co (LSE:HHPD) has a EV-to-EBIT of 10.42 as of Aug. 13, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Hon Hai Precision Industry Co and its competitors. This is 56% above median its historical median of 6.70. Over the past decade, Hon Hai Precision Industry Co's EV-to-EBIT has ranged from 3.82 to 12.18. According to the industry distribution chart, Hon Hai Precision Industry Co ranks #481 out of 1772 companies in the Hardware industry, placing it in the top 27.1%.
Is Hon Hai Precision Industry Co's EV-to-EBIT too high?
Hon Hai Precision Industry Co's current EV-to-EBIT of 10.42 is 56% above median its 10-year median of 6.70. Over the past 10 years, this metric has ranged from a low of 3.82 to a high of 12.18. The Hardware industry median EV-to-EBIT is 21.20. Hon Hai Precision Industry Co's value of 10.42 is 50.8% below this industry median. Based on the distribution chart, Hon Hai Precision Industry Co ranks #481 out of 1772 companies in the Hardware industry, which is above the industry midpoint. Overall, Hon Hai Precision Industry Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's EV-to-EBIT compare to APH and GLW?
According to the Hardware industry distribution chart, Hon Hai Precision Industry Co ranks #481 out of 1772 companies for EV-to-EBIT. This puts Hon Hai Precision Industry Co in the upper half of its industry. The industry median EV-to-EBIT is 21.20. Hon Hai Precision Industry Co's value of 10.42 is 50.8% below this benchmark. Historically, Hon Hai Precision Industry Co's own EV-to-EBIT has ranged from 3.82 to 12.18 over the past decade. While the company's 10-year median is 6.70 vs. the industry median of 21.20, Hon Hai Precision Industry Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Hardware company?
The median EV-to-EBIT among Hardware companies is 21.20, based on 1,772 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hon Hai Precision Industry Co's current EV-to-EBIT of 10.42 is 50.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Hon Hai Precision Industry Co and its competitors. For the Hardware industry, the median EV-to-EBIT is 21.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Hai Precision Industry Co's current EV-to-EBIT is 10.42, which is 56% above median its own 10-year median of 6.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Hai Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co (LSE:HHPD) is currently considered Modestly Overvalued. The stock's GF Value™ is $14.80, compared to a current price of $17.28 — trading 16.8% above its estimated fair value. The current EV-to-EBIT is 10.42, which is 56% above median its 10-year median of 6.70 and 50.8% below the Hardware industry median of 21.20. Hon Hai Precision Industry Co's overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Hon Hai Precision Industry Co (LSE:HHPD), the current EV-to-EBIT is 10.42 as of Aug. 13, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hon Hai Precision Industry Co (LSE:HHPD) Overvalued in 2026?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co stock appears to be overvalued.
The current stock price of $17.28 is trading 16.8% above its estimated GF Value™ of $14.80.
GuruFocus considers Hon Hai Precision Industry Co to be Modestly Overvalued.
Key valuation signals for LSE:HHPD:
EV-to-EBIT: 10.42 (56% above median its 10-year median of 6.70)
GF Value™: $14.80 vs. price of $17.28 (16.8% above fair value)
Industry Position: 50.8% below the Hardware median (#481 of 1772)
No single metric tells the full story. See the LSE:HHPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 50% of overall revenue in 2025. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones, as well as producing servers. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.
87GF Score
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