Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Honeywell International Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| 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. | Honeywell International Inc. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Enterprise Value to EBITDA Ratio, Current
Honeywell International Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 157,658) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 9,100) |
| Valuation Ratio | |
| EV/EBITDA | 17.33 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 61.39 |
| Caterpillar Inc. | 13.78 |
| Eaton Corp. plc | 29.27 |
| GE Aerospace | 14.74 |
| Lockheed Martin Corp. | 12.66 |
| RTX Corp. | 20.62 |
| EV/EBITDA, Sector | |
| Capital Goods | 18.14 |
| EV/EBITDA, Industry | |
| Industrials | 16.90 |
Based on: 10-K (reporting date: 2023-12-31).
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
Honeywell International Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 141,517) | 144,024) | 136,990) | 148,988) | 134,643) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 9,100) | 7,997) | 8,801) | 7,373) | 9,004) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 15.55 | 18.01 | 15.57 | 20.21 | 14.95 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | 71.32 | — | — | — | 284.02 | |
| Caterpillar Inc. | 12.16 | 13.86 | 12.43 | 19.87 | 9.66 | |
| Eaton Corp. plc | 24.91 | 19.18 | 17.06 | 22.11 | 12.86 | |
| GE Aerospace | 11.06 | 14.82 | 95.57 | 9.35 | 13.66 | |
| Lockheed Martin Corp. | 11.71 | 14.98 | 11.97 | 9.97 | 14.86 | |
| RTX Corp. | 16.62 | 14.92 | 15.48 | 41.71 | 12.60 | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 16.03 | 19.01 | 19.87 | 25.02 | 16.22 | |
| EV/EBITDA, Industry | ||||||
| Industrials | 15.81 | 17.19 | 16.36 | 26.72 | 17.59 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 141,517 ÷ 9,100 = 15.55
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. | Honeywell International Inc. EV/EBITDA ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |