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GuruFocus has detected 8 Warning Signs with The Hershey Co $HSY.
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The Hershey Co (NYSE:HSY)
EV-to-EBITDA
24.92 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, The Hershey Co's enterprise value is $33,130 Mil. The Hershey Co's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $1,330 Mil. Therefore, The Hershey Co's EV/EBITDA ratio for today is 24.92.

HSY' s EV-to-EBITDA Range Over the Past 10 Years
Min: 10   Max: 24.92
Current: 24.92

10
24.92

During the past 13 years, the highest EV/EBITDA Ratio of The Hershey Co was 24.92. The lowest was 10.00. And the median was 13.50.

HSY's EV-to-EBITDA is ranked lower than
72% of the 1719 Companies
in the Global Confectioners industry.

( Industry Median: 12.42 vs. HSY: 24.92 )

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, The Hershey Co's stock price is $115.96. The Hershey Co's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $1.85. Therefore, The Hershey Co's P/E Ratio for today is 62.61.

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


Definition

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

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=33130.148/1329.557
=24.92

The Hershey Co's current Enterprise Value is $33,130 Mil.
The Hershey Co's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 351.773 (Jun. 2016 ) + 437.7 (Sep. 2016 ) + 282.801 (Dec. 2016 ) + 257.283 (Mar. 2017 ) = $1,330 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.

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

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=115.96/1.852
=62.61

The Hershey Co's share price for today is $115.96.
The Hershey Co's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.68 (Jun. 2016 ) + 1.057 (Sep. 2016 ) + -0.468 (Dec. 2016 ) + 0.583 (Mar. 2017 ) = $1.85.

* 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.

The Hershey Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 14.2411.7510.0511.0411.8913.1014.6615.4117.1016.53

The Hershey Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 15.4115.2016.0917.5217.1018.1017.8814.6916.5319.45
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