Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
Item | Description | The company |
---|---|---|
EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | HP Inc. EBITDA decreased from 2016 to 2017 and from 2017 to 2018. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 27,629) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,853) |
Valuation Ratio | |
EV/EBITDA | 7.17 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Apple Inc. | 25.97 |
Arista Networks Inc. | 46.22 |
Cisco Systems Inc. | 15.38 |
Super Micro Computer Inc. | 18.79 |
Based on: 10-K (reporting date: 2018-10-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Oct 31, 2018 | Oct 31, 2017 | Oct 31, 2016 | Oct 31, 2015 | Oct 31, 2014 | Oct 31, 2013 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 35,448) | 34,944) | 27,000) | 29,583) | 77,821) | 64,390) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,853) | 3,939) | 4,366) | 9,120) | 11,235) | 11,547) | |
Valuation Ratio | |||||||
EV/EBITDA3 | 9.20 | 8.87 | 6.18 | 3.24 | 6.93 | 5.58 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Apple Inc. | — | — | — | — | — | — | |
Arista Networks Inc. | — | — | — | — | — | — | |
Cisco Systems Inc. | — | — | — | — | — | — | |
Super Micro Computer Inc. | 10.04 | — | — | — | — | — |
Based on: 10-K (reporting date: 2018-10-31), 10-K (reporting date: 2017-10-31), 10-K (reporting date: 2016-10-31), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-10-31), 10-K (reporting date: 2013-10-31).
3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 35,448 ÷ 3,853 = 9.20
4 Click competitor name to see calculations.
Valuation ratio | Description | The company |
---|---|---|
EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | HP Inc. EV/EBITDA ratio increased from 2016 to 2017 and from 2017 to 2018. |