Enterprise Value to EBITDA (EV/EBITDA)
Paying user area
Try for free
Steel Dynamics Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Steel Dynamics Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Steel Dynamics Inc., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
The financial data reveals a variable yet generally upward trend in profitability metrics over the five-year period, with notable fluctuations in certain years.
- Net Income
- Net income shows significant volatility. Starting at 812,741 thousand US dollars in 2017, it increased notably to 1,258,379 thousand in 2018. However, it declined sharply in 2019 to 671,103 thousand and further decreased to 550,822 thousand in 2020. This downward trend reversed dramatically in 2021, with net income rising to a peak of 3,214,066 thousand, marking the highest value in the period.
- Earnings before Tax (EBT)
- EBT follows a somewhat similar pattern to net income. It grows from 935,235 thousand in 2017 to 1,619,774 thousand in 2018, then decreases to 875,337 thousand in 2019 and further to 705,478 thousand in 2020. The year 2021 sees a substantial increase to 4,209,070 thousand, reflecting a strong recovery and growth in pre-tax earnings.
- Earnings before Interest and Tax (EBIT)
- EBIT trends mirror those of EBT closely. There is an initial rise from 1,069,634 thousand in 2017 to 1,746,394 thousand in 2018, followed by declines to 1,002,441 thousand in 2019 and further to 800,355 thousand in 2020. In 2021, EBIT experiences a significant increase, reaching 4,266,279 thousand, indicating improved operating profitability.
- Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA also displays a cyclical pattern with growth from 1,368,633 thousand in 2017 to 2,063,592 thousand in 2018. It then decreases in the following years to 1,323,523 thousand in 2019 and 1,126,144 thousand in 2020. The final year presents a sharp increase to 4,613,932 thousand in 2021, reflecting higher operational cash flow potential before non-cash expenses.
In summary, the data indicates strong growth in 2018 followed by a period of contraction during 2019 and 2020, possibly attributable to external or operational challenges. However, a pronounced recovery and substantial growth occurred in 2021, surpassing all previous years across all major profitability measures. This pattern suggests improved operational efficiency and favorable conditions contributing to significant earnings growth in the final year analyzed.
Enterprise Value to EBITDA Ratio, Current
Steel Dynamics Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Freeport-McMoRan Inc. | |
| EV/EBITDA, Industry | |
| Materials | |
Based on: 10-K (reporting date: 2021-12-31).
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
Steel Dynamics Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Freeport-McMoRan Inc. | ||||||
| EV/EBITDA, Industry | ||||||
| Materials | ||||||
Based on: 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), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a declining trend from 2017 to 2019, decreasing considerably from approximately 12.4 billion in 2017 to around 6.7 billion in 2019. This was followed by a notable recovery, increasing to about 10.9 billion in 2020 and further rising substantially to approximately 15.2 billion in 2021. Overall, the EV showed a trough in 2019 before climbing to its highest value across the periods in 2021.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA increased significantly from 1.37 billion in 2017 to a peak of approximately 2.06 billion in 2018. However, it then declined sharply in 2019 and 2020 to around 1.32 billion and 1.13 billion respectively. In 2021, EBITDA surged dramatically, reaching approximately 4.61 billion, representing the highest level in the observed timeframe and more than doubling the previous peak.
- EV/EBITDA Ratio
- The EV/EBITDA ratio followed a fluctuating pattern. It started at 9.07 in 2017, dropped significantly to 4.68 in 2018, and slightly increased to 5.05 in 2019. The ratio then rose sharply to 9.65 in 2020, indicating a relative valuation increase compared to EBITDA. In 2021, the ratio fell to its lowest level at 3.29, driven primarily by the substantial increase in EBITDA that outpaced the growth in enterprise value.
- Summary
- Over the five-year period, the enterprise value and EBITDA showed volatility with notable lows in 2019 and significant recoveries by 2021. The EBITDA experienced a strong rebound in 2021, substantially exceeding previous years. The EV/EBITDA ratio's fluctuations reflect changes in valuation relative to earnings capacity, with a peak in 2020 followed by a marked decrease in 2021, suggesting enhanced operational profitability relative to the company's enterprise valuation at that time.