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GuruFocus has detected 3 Warning Signs with H&R Block Inc $HRB.
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H&R Block Inc (NYSE:HRB)
EV-to-EBITDA
8.23 (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 $6,969 Mil. H&R Block Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Apr. 2017 was $847 Mil. Therefore, H&R Block Inc's EV/EBITDA ratio for today is 8.23.

HRB' s EV-to-EBITDA Range Over the Past 10 Years
Min: 3.9   Max: 17.2
Current: 8.22

3.9
17.2

During the past 13 years, the highest EV/EBITDA Ratio of H&R Block Inc was 17.20. The lowest was 3.90. And the median was 9.50.

HRB's EV-to-EBITDA is ranked higher than
75% of the 79 Companies
in the Global Personal Services industry.

( Industry Median: 12.43 vs. HRB: 8.22 )

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 $31.31. H&R Block Inc's earnings per share for the trailing twelve months (TTM) ended in Apr. 2017 was $1.91. Therefore, H&R Block Inc's P/E Ratio for today is 16.38.

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)
=6969.417/847.028
=8.23

H&R Block Inc's current Enterprise Value is $6,969 Mil.
H&R Block Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Apr. 2017 was -168.268 (Jul. 2016 ) + -190.01 (Oct. 2016 ) + -79.498 (Jan. 2017 ) + 1284.804 (Apr. 2017 ) = $847 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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)
=31.31/1.911
=16.38

H&R Block Inc's share price for today is $31.31.
H&R Block Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Apr. 2017 was -0.56 (Jul. 2016 ) + -0.68 (Oct. 2016 ) + -0.503 (Jan. 2017 ) + 3.654 (Apr. 2017 ) = $1.91.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 local exchange's currency.

H&R Block Inc Annual Data

Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16Apr17
ev2ebitda 10.115.427.858.987.458.667.297.646.696.63

H&R Block Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ev2ebitda 7.997.649.7012.5612.916.698.558.538.846.63
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