Enterprise Value to EBITDA (EV/EBITDA)
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Caterpillar Inc. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Caterpillar Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Profit Attributable to Common Stockholders
- The profit attributable to common stockholders shows a consistent upward trend from 2020 to 2024. Starting at $2,998 million in 2020, it more than doubles by 2021 to $6,489 million and continues to rise, reaching $10,792 million in 2024. The most significant increase occurs between 2022 and 2023, suggesting improved profitability during this period.
- Earnings Before Tax (EBT)
- EBT also displays a steady increase across the years, beginning at $4,009 million in 2020 and climbing to $13,417 million in 2024. The growth mirrors the trend seen in profit attributable to common stockholders, with notable acceleration from 2022 onwards, indicating enhanced earnings performance before taxation.
- Earnings Before Interest and Tax (EBIT)
- EBIT levels reflect continuous expansion, rising from $4,523 million in 2020 to $13,929 million in 2024. The steady increments each year demonstrate improving operating income, with a particularly marked rise between 2021 and 2023, which may correlate with operational efficiency or increased revenue generation.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures show consistent growth throughout the period under review. Starting at $6,955 million in 2020, EBITDA increases steadily each year, reaching $16,082 million in 2024. The pattern suggests a robust expansion in core operational earnings, with significant gains occurring from 2021 onward, denoting enhanced cash-generating capability before accounting for non-cash expenses.
Enterprise Value to EBITDA Ratio, Current
Caterpillar Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| EV/EBITDA, Sector | |
| Capital Goods | |
| EV/EBITDA, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2024-12-31).
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
Caterpillar Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Capital Goods | ||||||
| EV/EBITDA, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates an overall upward trend from 2020 through 2024. Beginning at $138,173 million in 2020, it slightly decreased in 2021 to $137,695 million, but from that point forward, it increased significantly to reach $200,386 million by the end of 2024. This indicates a growing valuation of the company over the observed period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA shows a consistent annual increase, starting at $6,955 million in 2020 and rising steadily each year to reach $16,082 million in 2024. The most notable growth occurs between 2022 and 2023, with an increase from $11,433 million to $15,768 million, suggesting improving operational profitability and efficiency.
- EV/EBITDA Ratio
- The EV/EBITDA ratio reflects valuation relative to earnings and exhibits a general declining trend from 19.87 in 2020 to around the 12.0–12.5 range by 2024, with a slight fluctuation in 2022 when the ratio increased to 13.86 before declining again. This downward trend implies that the company's valuation has become more attractive relative to its earnings, potentially signaling improved earnings performance or market adjustments in valuation multiples.