Enterprise Value to EBITDA (EV/EBITDA)
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).
| 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. | Steel Dynamics Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
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) | 18,879,145) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,613,932) |
| Valuation Ratio | |
| EV/EBITDA | 4.09 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Freeport-McMoRan Inc. | 8.94 |
| EV/EBITDA, Industry | |
| Materials | 14.97 |
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 | 15,168,019) | 10,864,840) | 6,678,596) | 9,665,432) | 12,412,536) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,613,932) | 1,126,144) | 1,323,523) | 2,063,592) | 1,368,633) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 3.29 | 9.65 | 5.05 | 4.68 | 9.07 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Freeport-McMoRan Inc. | 7.20 | 15.89 | 14.35 | — | — | |
| EV/EBITDA, Industry | ||||||
| Materials | 11.65 | 17.12 | 14.98 | — | — | |
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
= 15,168,019 ÷ 4,613,932 = 3.29
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. | Steel Dynamics Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |