Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Becton, Dickinson & Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-09-30), 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).
- Net Income Trend
- The net income displays significant variability over the reported years. Starting at 976 million USD in 2016, it increased to 1,100 million USD in 2017, then dropped sharply to 311 million USD in 2018. Following this decline, net income recovered strongly to reach 1,233 million USD in 2019, slightly declined to 874 million USD in 2020, and surged to its highest level of 2,092 million USD in 2021. This pattern indicates substantial fluctuations, with a notable rebound and strong growth in the most recent year.
- Earnings Before Tax (EBT) Dynamics
- EBT experienced less volatility relative to net income, with values oscillating between 976 million USD and 1,176 million USD from 2016 to 2019. A dip to 985 million USD occurred in 2020 before a pronounced increase to 2,242 million USD in 2021. The 2021 figure represents a significant upward shift, more than doubling the previous years’ results, indicating improved profitability before the impact of taxes.
- EBIT Movement
- EBIT, a measure of operational profit, exhibited a generally upward trend. It started at 1,462 million USD in 2016 and rose gradually, peaking at 1,879 million USD in 2018. A slight decline occurred in the following years, reaching 1,513 million USD in 2020, before a sharp rise to 2,711 million USD in 2021. The overall pattern shows strengthening operating earnings with some fluctuations, culminating in substantial growth in the latest period.
- EBITDA Variation
- EBITDA figures reflect a substantial increase over the years analyzed. Beginning at 2,576 million USD in 2016, the value remained relatively flat in 2017, then surmounted to 3,857 million USD in 2018 and 4,068 million USD in 2019. Despite a decline to 3,667 million USD in 2020, EBITDA rebounded strongly to 4,984 million USD in 2021. This trend points to improving core earnings performance before accounting for depreciation and amortization, with notable growth especially in recent periods despite some setback in 2020.
- General Observations
- Overall, the financial metrics demonstrate meaningful growth and recovery after dips, particularly in 2018 and 2020. The latest year shows the strongest performance across all profitability measures, suggesting enhanced operational efficiency and profitability. The sharp increases in both EBIT and EBITDA in 2021 emphasize improved earnings quality and resilience.
Enterprise Value to EBITDA Ratio, Current
Becton, Dickinson & Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 89,222) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,984) |
| Valuation Ratio | |
| EV/EBITDA | 17.90 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 21.18 |
| Elevance Health Inc. | 7.16 |
| Intuitive Surgical Inc. | 48.44 |
| Medtronic PLC | 15.37 |
| UnitedHealth Group Inc. | 13.41 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 15.77 |
| EV/EBITDA, Industry | |
| Health Care | 16.42 |
Based on: 10-K (reporting date: 2021-09-30).
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.
Enterprise Value to EBITDA Ratio, Historical
Becton, Dickinson & Co., historical EV/EBITDA calculation, comparison to benchmarks
| Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | Sep 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 84,640) | 80,969) | 89,200) | 85,173) | 55,792) | 45,755) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,984) | 3,667) | 4,068) | 3,857) | 2,585) | 2,576) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 16.98 | 22.08 | 21.93 | 22.08 | 21.58 | 17.76 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Abbott Laboratories | 17.42 | 25.99 | — | — | — | — | |
| Elevance Health Inc. | 10.05 | 7.57 | — | — | — | — | |
| Intuitive Surgical Inc. | 44.54 | 59.12 | — | — | — | — | |
| Medtronic PLC | 24.41 | 17.92 | — | — | — | — | |
| UnitedHealth Group Inc. | 17.39 | 13.39 | — | — | — | — | |
| EV/EBITDA, Sector | |||||||
| Health Care Equipment & Services | 18.06 | 16.63 | — | — | — | — | |
| EV/EBITDA, Industry | |||||||
| Health Care | 14.33 | 18.21 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-09-30), 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).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 84,640 ÷ 4,984 = 16.98
4 Click competitor name to see calculations.
The financial data reveals several notable trends over the six-year period. The enterprise value (EV) exhibited a general upward trend from 2016 through 2019, increasing from approximately $45.8 billion to around $89.2 billion. However, in 2020, the EV declined to approximately $81.0 billion before rebounding slightly in 2021 to about $84.6 billion.
Earnings before interest, tax, depreciation, and amortization (EBITDA) also showed a positive trajectory overall. EBITDA remained relatively stable between 2016 and 2017, with values around $2.6 billion, before experiencing a substantial increase to nearly $3.9 billion in 2018 and further rising to about $4.1 billion in 2019. In 2020, EBITDA decreased to approximately $3.7 billion but then surged to nearly $5.0 billion in 2021, marking the highest level in the period reviewed.
The EV/EBITDA ratio provides insight into valuation relative to earnings performance. This ratio increased from 17.76 in 2016 to peak values above 22 in 2018 and 2020, suggesting a period of higher valuation multiples or potentially slower earnings growth relative to enterprise value. In 2021, the ratio declined significantly to 16.98, the lowest point in the period, reflecting either an increase in EBITDA outpacing EV growth or a correction in valuation multiples.
- Enterprise Value (EV)
- Increased steadily from 2016 to 2019, peaked in 2019, followed by a dip in 2020, then partially recovered in 2021.
- EBITDA
- Maintained stability initially, then demonstrated strong growth in 2018 and 2019, decreased in 2020, and rebounded notably in 2021 to the highest recorded level.
- EV/EBITDA Ratio
- Rose steadily until 2018 and remained elevated through 2020, indicating relatively higher valuation per unit of EBITDA, before dropping sharply in 2021, signaling improved earnings relative to enterprise value or a market valuation adjustment.
Overall, the data suggest a recovery in profitability in 2021 after a decline in 2020, alongside fluctuations in market valuation measures. The drop in the EV/EBITDA ratio in 2021 points toward either enhanced operational performance or a more conservative market valuation compared to prior years.