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

Air Products & Chemicals Inc., EBITDA calculation

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Net income attributable to Air Products	1,886,700)	1,760,000)	1,497,800)	3,000,400)	631,100)	1,277,900)
Add: Net income attributable to noncontrolling interest	44,400)	49,400)	35,100)	20,800)	30,400)	39,700)
Less: Income (loss) from discontinued operations, net of tax	(14,300)	—)	42,200)	1,866,000)	(884,200)	—)
Add: Income tax expense	478,400)	480,100)	524,300)	260,900)	586,500)	415,900)
Earnings before tax (EBT)	2,423,800)	2,289,500)	2,015,000)	1,416,100)	2,132,200)	1,733,500)
Add: Interest expense	109,300)	137,000)	130,500)	120,600)	115,500)	103,500)
Earnings before interest and tax (EBIT)	2,533,100)	2,426,500)	2,145,500)	1,536,700)	2,247,700)	1,837,000)
Add: Depreciation and amortization	1,185,000)	1,082,800)	970,700)	865,800)	925,900)	936,400)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,718,100)	3,509,300)	3,116,200)	2,402,500)	3,173,600)	2,773,400)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

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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.	Air Products & Chemicals Inc. EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	62,954,505)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,718,100)
Valuation Ratio
EV/EBITDA	16.93
Benchmarks
EV/EBITDA, Competitors¹
Linde plc	17.65
Sherwin-Williams Co.	23.27
EV/EBITDA, Sector
Chemicals	26.65
EV/EBITDA, Industry
Materials	24.44

Based on: 10-K (reporting date: 2020-09-30).

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.

Air Products & Chemicals Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	61,669,949)	52,915,712)	35,745,103)	35,621,405)	35,233,696)	35,850,244)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	3,718,100)	3,509,300)	3,116,200)	2,402,500)	3,173,600)	2,773,400)
Valuation Ratio
EV/EBITDA³	16.59	15.08	11.47	14.83	11.10	12.93
Benchmarks
EV/EBITDA, Competitors⁴
Linde plc	17.70	15.17	—	—	—	—
Sherwin-Williams Co.	21.01	21.13	—	—	—	—
EV/EBITDA, Sector
Chemicals	18.67	16.78	—	—	—	—
EV/EBITDA, Industry
Materials	17.97	16.34	—	—	—	—

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

¹ See details »

² See details »

³ 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 61,669,949 ÷ 3,718,100 = 16.59

⁴ Click competitor name to see calculations.

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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.	Air Products & Chemicals Inc. EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.

Air Products & Chemicals Inc. (NYSE:APD)

Enterprise Value to EBITDA (EV/EBITDA)

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

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical