Stock Analysis on Net

HP Inc. (NYSE:HPQ)

This company has been moved to the archive! The financial data has not been updated since August 29, 2019.

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

HP Inc., EBITDA calculation

US$ in millions

Microsoft Excel
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).

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

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

Microsoft Excel
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

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

Microsoft Excel
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.

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.