Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Carrier Global Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| 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. | Carrier Global Corp. EBITDA decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |
Enterprise Value to EBITDA Ratio, Current
Carrier Global Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 39,576) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,974) |
| Valuation Ratio | |
| EV/EBITDA | 7.96 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 55.00 |
| Caterpillar Inc. | 14.72 |
| Eaton Corp. plc | 30.31 |
| GE Aerospace | 14.57 |
| Honeywell International Inc. | 16.88 |
| Lockheed Martin Corp. | 14.06 |
| RTX Corp. | 20.69 |
| EV/EBITDA, Sector | |
| Capital Goods | 24.18 |
| EV/EBITDA, Industry | |
| Industrials | 21.20 |
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
Carrier Global Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Enterprise value (EV)1 | 42,670) | 46,441) | 39,816) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,974) | 3,057) | 3,489) | |
| Valuation Ratio | ||||
| EV/EBITDA3 | 8.58 | 15.19 | 11.41 | |
| Benchmarks | ||||
| EV/EBITDA, Competitors4 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 13.86 | 12.43 | 19.87 | |
| Eaton Corp. plc | 19.18 | 17.06 | 22.11 | |
| GE Aerospace | 14.82 | 95.57 | 9.35 | |
| Honeywell International Inc. | 18.01 | 15.57 | 20.21 | |
| Lockheed Martin Corp. | 14.98 | 11.97 | 9.97 | |
| RTX Corp. | 14.92 | 15.48 | 41.71 | |
| EV/EBITDA, Sector | ||||
| Capital Goods | 19.01 | 19.87 | 25.02 | |
| EV/EBITDA, Industry | ||||
| Industrials | 17.07 | 16.21 | 26.87 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 42,670 ÷ 4,974 = 8.58
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. | Carrier Global Corp. EV/EBITDA ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |