Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

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

Kraft Heinz Co., EBITDA calculation

US$ in millions

12 months ended:	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Net income (loss) attributable to Kraft Heinz	1,935)	(10,192)	10,999)	3,632)	634)
Add: Net income attributable to noncontrolling interest	(2)	(62)	(9)	10)	13)
Add: Income tax expense	728)	(1,067)	(5,460)	1,381)	366)
Earnings before tax (EBT)	2,661)	(11,321)	5,530)	5,023)	1,013)
Add: Interest expense	1,361)	1,284)	1,234)	1,134)	1,321)
Earnings before interest and tax (EBIT)	4,022)	(10,037)	6,764)	6,157)	2,334)
Add: Depreciation and amortization	994)	983)	1,036)	1,337)	740)
Earnings before interest, tax, depreciation and amortization (EBITDA)	5,016)	(9,054)	7,800)	7,494)	3,074)

Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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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.	Kraft Heinz Co. EBITDA decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Enterprise Value to EBITDA Ratio, Current

Kraft Heinz Co., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	69,123)
Earnings before interest, tax, depreciation and amortization (EBITDA)	5,016)
Valuation Ratio
EV/EBITDA	13.78
Benchmarks
EV/EBITDA, Competitors¹
Altria Group Inc.	9.22
Coca-Cola Co.	19.18
PepsiCo Inc.	15.43
Philip Morris International Inc.	17.72
EV/EBITDA, Sector
Food, Beverage & Tobacco	21.86
EV/EBITDA, Industry
Consumer Staples	29.70

Based on: 10-K (reporting date: 2019-12-28).

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

Kraft Heinz Co., historical EV/EBITDA calculation, comparison to benchmarks

	Dec 28, 2019	Dec 29, 2018	Dec 30, 2017	Dec 31, 2016	Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	59,922)	65,217)	116,405)	141,537)	114,624)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	5,016)	(9,054)	7,800)	7,494)	3,074)
Valuation Ratio
EV/EBITDA³	11.95	—	14.92	18.89	37.29
Benchmarks
EV/EBITDA, Competitors⁴
Altria Group Inc.	45.37	—	—	—	—
Coca-Cola Co.	21.79	—	—	—	—
PepsiCo Inc.	17.85	—	—	—	—
Philip Morris International Inc.	13.77	—	—	—	—
EV/EBITDA, Sector
Food, Beverage & Tobacco	19.53	—	—	—	—
EV/EBITDA, Industry
Consumer Staples	18.45	—	—	—	—