Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Roper Technologies Inc., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
- Net Earnings
- The net earnings exhibited significant fluctuations over the observed five-year period. After nearly doubling from 944.4 million USD in 2018 to 1.77 billion USD in 2019, net earnings fell sharply in 2020 to approximately 950 million USD, resembling the 2018 level. A moderate rise occurred in 2021, reaching 1.15 billion USD, followed by a substantial increase in 2022 to 4.54 billion USD, marking the highest figure in the period.
- Earnings Before Tax (EBT)
- EBT demonstrated a similar pattern of volatility. Starting at roughly 1.20 billion USD in 2018, it surged to 2.23 billion USD in 2019 before dropping to approximately 1.21 billion USD in 2020. Subsequently, EBT remained relatively stable, with slight increases in 2021 and 2022, settling around 1.28 billion USD in the latter year, which is considerably lower than the 2019 peak.
- Earnings Before Interest and Tax (EBIT)
- EBIT followed a comparable trend. The value rose from 1.38 billion USD in 2018 to 2.41 billion USD in 2019, then declined sharply to 1.43 billion USD in 2020. A steady but modest increase took place over the next two years, culminating in 1.47 billion USD in 2022, maintaining a level close to 2020 and 2021.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA values mirrored prior earnings trends. The figure grew from 1.75 billion USD in 2018 to a peak of 2.83 billion USD in 2019, decreased to 1.95 billion USD in 2020, then rebounded slightly to around 2.14 billion USD in 2021. A slight decline followed in 2022, ending with approximately 2.12 billion USD.
- Overall Observations
- The data reveals a pronounced peak in earnings metrics in 2019, followed by a significant decline in 2020 across all indicators, likely reflecting external factors impacting financial performance during that year. From 2020 onward, earnings show moderate recovery or stabilization, except for net earnings, which surged notably in 2022 when compared with the previous years. This divergence in net earnings from other pre-tax operating earnings suggests notable adjustments or non-operating factors positively influencing net profitability in 2022. Despite fluctuations, operational profitability as measured by EBIT and EBITDA remained relatively stable after 2020, without returning to the 2019 peak levels.
Enterprise Value to EBITDA Ratio, Current
Roper Technologies Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 58,644,366) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,124,500) |
| Valuation Ratio | |
| EV/EBITDA | 27.60 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | 23.83 |
| Arista Networks Inc. | 35.68 |
| Cisco Systems Inc. | 18.08 |
| Dell Technologies Inc. | 10.96 |
| Super Micro Computer Inc. | 23.19 |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | 22.95 |
| EV/EBITDA, Industry | |
| Information Technology | 37.95 |
Based on: 10-K (reporting date: 2022-12-31).
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
Roper Technologies Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 51,446,203) | 53,952,121) | 49,546,610) | 41,884,369) | 37,664,445) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,124,500) | 2,139,200) | 1,949,000) | 2,830,000) | 1,747,500) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 24.22 | 25.22 | 25.42 | 14.80 | 21.55 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Apple Inc. | 19.15 | 20.47 | 23.12 | 13.59 | — | |
| Arista Networks Inc. | 24.52 | 37.29 | 26.96 | — | — | |
| Cisco Systems Inc. | 10.52 | 15.05 | 9.69 | 11.36 | — | |
| Dell Technologies Inc. | 4.85 | 9.32 | 8.64 | — | — | |
| Super Micro Computer Inc. | 10.50 | 11.19 | 10.65 | 7.75 | — | |
| EV/EBITDA, Sector | ||||||
| Technology Hardware & Equipment | 17.26 | 19.17 | 19.89 | — | — | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 18.28 | 20.46 | 19.69 | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 51,446,203 ÷ 2,124,500 = 24.22
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a generally upward trend from 2018 to 2021, increasing from approximately $37.7 billion to $53.95 billion. However, in 2022, there was a noticeable decline to around $51.45 billion. This indicates a slight contraction in the company's valuation after a period of growth.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed significant variability throughout the periods analyzed. Starting at $1.75 billion in 2018, it peaked at $2.83 billion in 2019, then dropped sharply to $1.95 billion in 2020. Subsequently, EBITDA rose moderately in 2021 to $2.14 billion and marginally decreased in 2022 to $2.12 billion. The fluctuations suggest operational volatility or varying profitability levels over these years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio fluctuated considerably over the five-year span. It declined markedly from 21.55 in 2018 to 14.8 in 2019, indicating improved valuation relative to earnings at that time. This was followed by a sharp increase to 25.42 in 2020, and it remained elevated in 2021 at 25.22, with a slight decrease to 24.22 in 2022. The rising ratio after 2019 suggests that enterprise value grew faster than EBITDA or that profitability declined in relation to valuation, implying a potentially higher valuation multiple in the latest years despite the EBITDA fluctuations.