Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Debt to Equity since 2015
- Price to Earnings (P/E) since 2015
- Price to Book Value (P/BV) since 2015
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Hewlett Packard Enterprise Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
- Net earnings (loss) attributable to HPE
- The net earnings showed significant fluctuations over the period. Starting at 1,908 million USD in 2018, earnings declined to 1,049 million USD in 2019, followed by a loss of 322 million USD in 2020. A strong recovery occurred in 2021, with net earnings peaking at 3,427 million USD. This was followed by a decrease to 868 million USD in 2022 and an increase again to 2,025 million USD in 2023. Overall, the net earnings demonstrate volatility with a notable dip in 2020 and strong recovery in subsequent years.
- Earnings before tax (EBT)
- EBT exhibited a volatile pattern consistent with net earnings. It started modestly at 264 million USD in 2018 and increased significantly to 1,569 million USD in 2019. Similar to net earnings, EBT turned negative in 2020, with a loss of 431 million USD. A recovery was observed in 2021, reaching 3,596 million USD, then declined to 881 million USD in 2022. In 2023, EBT again improved to 2,241 million USD. This pattern reflects sensitivity to operational and possibly external factors affecting profitability before taxation.
- Earnings before interest and tax (EBIT)
- EBIT showed a strong upward trend from 2018 to 2021, moving from 617 million USD to 3,885 million USD. However, there was a negative EBIT of 99 million USD in 2020, indicating operational challenges during that year. After peaking in 2021, EBIT declined to 1,141 million USD in 2022 but improved to 2,567 million USD in 2023. This trend mirrors the overall profitability dynamics before interest and tax impacts.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA displayed a generally strong growth trajectory with some fluctuations. Beginning at 3,193 million USD in 2018, it increased to 4,415 million USD in 2019. However, in 2020, there was a decline to 2,526 million USD, marking the lowest in the given period. This was followed by a sharp increase to 6,482 million USD in 2021. Subsequently, EBITDA dropped to 3,621 million USD in 2022, before rising again to 5,183 million USD in 2023. The EBITDA fluctuations suggest variations in operating cash flow generation capability, with a significant dip in 2020 and robust recovery afterward.
Enterprise Value to EBITDA Ratio, Current
Hewlett Packard Enterprise Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | |
| Arista Networks Inc. | |
| Cisco Systems Inc. | |
| Dell Technologies Inc. | |
| Super Micro Computer Inc. | |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2023-10-31).
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
Hewlett Packard Enterprise Co., historical EV/EBITDA calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Apple Inc. | |||||||
| Arista Networks Inc. | |||||||
| Cisco Systems Inc. | |||||||
| Dell Technologies Inc. | |||||||
| Super Micro Computer Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| EV/EBITDA, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited fluctuations over the six-year period. Starting at $27,773 million in 2018, it rose to a peak of $30,844 million in 2019 before declining to $27,432 million in 2020. From 2020 onwards, the value experienced moderate increases, reaching $29,171 million in 2021 and $29,228 million in 2022, and further rising to $30,358 million in 2023. Overall, the enterprise value shows variability with a tendency to recover after the dip in 2020.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA displayed significant volatility throughout the period. Starting at $3,193 million in 2018, it increased notably to $4,415 million in 2019, followed by a sharp decrease to $2,526 million in 2020. A strong rebound occurred in 2021 when EBITDA almost doubled to $6,482 million. However, this was followed by another decline to $3,621 million in 2022, before rising again to $5,183 million in 2023. This pattern suggests fluctuating operational performance or one-time factors influencing earnings.
- EV/EBITDA Ratio
- The EV/EBITDA multiple varied considerably over the years, reflecting the changes in both enterprise value and EBITDA. The ratio was relatively high at 8.7 in 2018 and decreased to 6.99 in 2019, then sharply increased to 10.86 in 2020, indicating a period where the company valuation was high relative to its earnings, likely driven by the drop in EBITDA. A significant decrease to 4.5 occurred in 2021, coinciding with the EBITDA peak. The ratio increased again to 8.07 in 2022 and then declined to 5.86 in 2023. These movements imply varying market perceptions of the company's valuation relative to its earnings over time, with notable undervaluation in 2021.