Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

HP Inc., EBITDA calculation

US$ in millions

12 months ended:	Oct 31, 2018	Oct 31, 2017	Oct 31, 2016	Oct 31, 2015	Oct 31, 2014	Oct 31, 2013
Net earnings	5,327)	2,526)	2,496)	4,554)	5,013)	5,113)
Less: Net loss from discontinued operations	—)	—)	(170)	—)	—)	—)
Add: Income tax expense	(2,314)	750)	1,095)	178)	1,544)	1,397)
Earnings before tax (EBT)	3,013)	3,276)	3,761)	4,732)	6,557)	6,510)
Add: Interest expense on borrowings	312)	309)	273)	327)	344)	426)
Earnings before interest and tax (EBIT)	3,325)	3,585)	4,034)	5,059)	6,901)	6,936)
Add: Depreciation and amortization	528)	354)	332)	4,061)	4,334)	4,611)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,853)	3,939)	4,366)	9,120)	11,235)	11,547)

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).

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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.

HP Inc., current EV/EBITDA calculation, comparison to benchmarks

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.	28.82
Arista Networks Inc.	55.00
Cisco Systems Inc.	15.63
Super Micro Computer Inc.	23.05

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.

HP Inc., historical EV/EBITDA calculation, comparison to benchmarks

	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).

¹ See details »

² See details »

³ 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 35,448 ÷ 3,853 = 9.20

⁴ Click competitor name to see calculations.

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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.

HP Inc. (NYSE:HPQ)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical