Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Intuitive Surgical Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data over the five-year span from 2020 to 2024 reveals significant growth in key profitability metrics. The net income attributable to the company exhibits a generally upward trend, starting from approximately 1.06 billion US dollars in 2020 and rising substantially to over 2.32 billion US dollars by 2024. This represents more than a twofold increase, indicating strong improvements in profitability.
Earnings before tax (EBT) mirror this positive trajectory, showing an increase from around 1.21 billion US dollars in 2020 to approximately 2.67 billion US dollars in 2024. This steady growth in EBT suggests enhanced earnings capacity prior to tax considerations, reflecting improved operational performance or revenue growth.
The earnings before interest and tax (EBIT) figures are identical to those of EBT across all periods, implying either negligible interest expenses or a structural accounting characteristic that aligns EBIT closely with EBT. EBIT increased from roughly 1.21 billion US dollars in 2020 to 2.67 billion US dollars in 2024, confirming strengthened core business profitability.
The earnings before interest, tax, depreciation, and amortization (EBITDA) display a similar positive trend, rising from about 1.48 billion US dollars in 2020 to approximately 3.14 billion US dollars in 2024. This growth in EBITDA, which often serves as a proxy for operational cash flow, indicates improving operational efficiency and cash-generating ability.
- Key observations:
- 1. All profitability measures consistently increased over the reviewed period, signaling sustained growth.
- 2. The net income showed a notable dip in 2022 compared to 2021 but rebounded strongly in subsequent years, culminating in the highest value in 2024.
- 3. The alignment of EBIT and EBT values suggests minimal impact from interest expenses or financial leverage changes during this period.
- 4. EBITDA growth outpaced net income growth, reflecting disciplined control over non-cash expenses and enhanced operational performance.
Overall, the patterns indicate a company that has successfully expanded its profitability and operational efficiency over the examined years, despite a temporary setback in net income in 2022. The steady increase in earnings metrics positions the company well for sustainable future growth.
Enterprise Value to EBITDA Ratio, Current
Intuitive Surgical Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 181,184,124) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,135,800) |
| Valuation Ratio | |
| EV/EBITDA | 57.78 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 21.88 |
| CVS Health Corp. | 9.99 |
| Elevance Health Inc. | 7.01 |
| Medtronic PLC | 14.62 |
| UnitedHealth Group Inc. | 11.61 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 14.60 |
| EV/EBITDA, Industry | |
| Health Care | 18.73 |
Based on: 10-K (reporting date: 2024-12-31).
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
Intuitive Surgical Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 200,047,585) | 128,123,188) | 81,892,877) | 98,018,095) | 87,689,991) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,135,800) | 2,380,700) | 1,972,600) | 2,200,500) | 1,483,200) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 63.79 | 53.82 | 41.52 | 44.54 | 59.12 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 22.28 | 19.49 | 15.85 | 17.42 | 25.99 | |
| CVS Health Corp. | 9.86 | 8.03 | 12.42 | 10.41 | 8.56 | |
| Elevance Health Inc. | 8.15 | 10.24 | 10.26 | 10.05 | 7.57 | |
| Medtronic PLC | 14.63 | 15.28 | 14.99 | 24.41 | 17.92 | |
| UnitedHealth Group Inc. | 17.17 | 13.60 | 15.11 | 17.39 | 13.39 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 16.98 | 14.01 | 14.82 | 16.32 | 14.62 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 20.34 | 19.28 | 13.93 | 14.07 | 17.33 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 200,047,585 ÷ 3,135,800 = 63.79
4 Click competitor name to see calculations.
The financial data presents a variable trend in key financial metrics over the five-year period ending in 2024. Enterprise value (EV) reveals an initial increase from 87.7 billion USD in 2020 to approximately 98.0 billion USD in 2021, followed by a decline to nearly 81.9 billion USD in 2022. Subsequently, there is a strong upward trajectory, reaching 128.1 billion USD in 2023 and significantly rising to 200.0 billion USD by the end of 2024.
In terms of earnings before interest, tax, depreciation, and amortization (EBITDA), there is a consistent upward trend. EBITDA increased from about 1.48 billion USD in 2020 to 2.20 billion USD in 2021, experienced a slight dip to 1.97 billion USD in 2022, but resumed growth to 2.38 billion USD in 2023 and further to 3.14 billion USD in 2024. This indicates improving operational profitability over the long term despite minor fluctuations.
The EV/EBITDA ratio, which measures valuation relative to earnings, starts at a high level of 59.12 in 2020, decreases steadily to 41.52 by 2022, and then rises again to 63.79 by 2024. The ratio’s decline through 2022 reflects a period where enterprise value grew less rapidly than EBITDA or even contracted, implying improving valuation attractiveness. The subsequent increase in the ratio suggests that enterprise value growth outpaced EBITDA from 2023 onward, which may indicate higher market expectations or premium valuations despite robust earnings growth.
- Summary of trends:
- Enterprise value shows significant volatility with a peak toward the end of the period.
- EBITDA demonstrates a generally positive trend indicating strengthening operational performance.
- The EV/EBITDA ratio fluctuates, suggesting shifting market sentiment and valuation levels that do not consistently align with earnings growth.
Overall, the financial metrics suggest strengthening operational results alongside fluctuating market valuation, highlighting a dynamic environment where investor expectations and company performance have seen notable changes across the analyzed period.