CLP EV/EBITDA
What is the EV/EBITDA of CLP?
The EV/EBITDA of CLP Holdings Limited is 26.85
What is the definition of EV/EBITDA?
EV/EBITDA is enterprise value divided by earnings before interest, tax, depreciation, and amortization. It is a measure of how expensive a stock is and is more frequently valid for comparisons across companies than the price to earnings ratio. It measures the price (in the form of enterprise value) an investor pays for the benefit of the company’s cash flow (in the form of EBITDA).
= enterprise value / EBITDA
Price to earnings ratios are impacted by a company's choice of capital structure - companies which raise money via debt will have lower P/Es (and therefore look cheaper) than companies that raise an equivalent amount of money by issuing shares, even though the two companies might have equivalent enterprise values. A sample case is when a company with debt were to raise money by issuing shares of stock, and then used the money to pay off the debt, this company's P/E ratio would shoot up because of the increased number of shares - although nothing about the fundamental value of the business has changed. EV / EBITDA is unaffected by capital structure as enterprise value includes the value of debt, and EBITDA is available to all investors (debt and equity) as it excludes interest payments on that debt. It is ideal for analysts and potential investors looking to compare companies within the same industry.
EV/EBITDA of companies in the Utilities sector on HKSE compared to CLP
What does CLP do?
CLP Holdings Limited, an investment holding company, engages in the generation, transmission, and distribution of electricity in Hong Kong, Mainland China, India, Southeast Asia, Taiwan, and Australia. The company generates electricity through coal, gas, nuclear, and renewable resources, such as wind, hydro, and solar. It serves 5.15 million retail customers in Hong Kong and Australia. The company is also involved in the provision of pumped storage services, and energy and infrastructure solutions; property investment activities; and retail of electricity and gas. It has generating capacity of 20,018 equity megawatts; and 16,834 kilometers of transmission and high voltage distribution lines. CLP Holdings Limited was founded in 1901 and is based in Hung Hom, Hong Kong.
Companies with ev/ebitda similar to CLP
- LGB Forge has EV/EBITDA of 26.81
- Select Harvests has EV/EBITDA of 26.82
- PPHE Hotel has EV/EBITDA of 26.83
- Owens & Minor has EV/EBITDA of 26.83
- Lonza AG has EV/EBITDA of 26.85
- Lonza AG has EV/EBITDA of 26.85
- CLP has EV/EBITDA of 26.85
- Gayatri Sugars has EV/EBITDA of 26.87
- Texas Instruments has EV/EBITDA of 26.88
- Genus Plc has EV/EBITDA of 26.88
- Ambuja Cements has EV/EBITDA of 26.89
- Shoppers Stop has EV/EBITDA of 26.89
- Qts Realty Trust Inc has EV/EBITDA of 26.90