Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Colgate-Palmolive Co., 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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Net Income Attributable to Colgate-Palmolive Company
- The net income showed a declining trend over the analyzed period. It started at 2,400 million US dollars in 2018 and decreased slightly to 2,367 million in 2019. In 2020, it increased to 2,695 million, marking the highest point during the period. However, from 2021 onwards, there was a noticeable decline, with net income falling to 2,166 million and further to 1,785 million in 2022. This suggests a weakening profitability after 2020.
- Earnings Before Tax (EBT)
- The EBT followed a pattern somewhat similar to net income, starting at 3,464 million US dollars in 2018 and declining to 3,301 million in 2019. It peaked in 2020 at 3,647 million, the highest point recorded in the period. Subsequently, EBT declined to 3,087 million in 2021 and further to 2,660 million in 2022. This decline after 2020 mirrors the trend observed in net income, indicating possible increases in tax expenses or reduced earnings capacity.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed a similar trend as EBT and net income. It was 3,657 million US dollars in 2018, decreasing slightly to 3,493 million in 2019, then rising to a peak of 3,830 million in 2020. After the peak, EBIT decreased sharply to 3,204 million in 2021 and further down to 2,827 million in 2022. The decline in EBIT signifies reduced operational profitability.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- The EBITDA figures demonstrated the same overall trend, beginning at 4,168 million US dollars in 2018 and slightly decreasing to 4,012 million in 2019. It peaked in 2020 at 4,369 million, followed by a significant decline to 3,760 million in 2021 and continuing down to 3,372 million in 2022. The contraction in EBITDA suggests a reduction in earnings before non-cash charges and indicates operational challenges post-2020.
- Overall Trend Analysis
- Across all profitability measures—net income, EBT, EBIT, and EBITDA—the data reveals a consistent pattern of peak performance in 2020 followed by a marked decline through 2022. This trend indicates that while the company experienced growth or favorable conditions up to 2020, subsequent years have seen decreases in profitability and earnings capacity. The decline after 2020 could be attributed to external market conditions, increased costs, or other operational challenges that impacted the company's financial performance.
Enterprise Value to EBITDA Ratio, Current
Colgate-Palmolive Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 70,910) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,372) |
| Valuation Ratio | |
| EV/EBITDA | 21.03 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Procter & Gamble Co. | 17.76 |
| EV/EBITDA, Industry | |
| Consumer Staples | 22.21 |
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
Colgate-Palmolive Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 68,823) | 73,300) | 73,870) | 72,618) | 63,413) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,372) | 3,760) | 4,369) | 4,012) | 4,168) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 20.41 | 19.49 | 16.91 | 18.10 | 15.21 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Procter & Gamble Co. | 17.48 | 17.56 | 18.11 | 32.66 | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Staples | 16.42 | 15.65 | 14.89 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 68,823 ÷ 3,372 = 20.41
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced an upward trend from 2018 through 2020, increasing from 63,413 million USD to a peak of 73,870 million USD in 2020. However, this was followed by a slight decline in 2021 to 73,300 million USD and a more notable decrease in 2022 to 68,823 million USD. Overall, the enterprise value showed growth in the initial years but faced a downturn in the most recent period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA showed a moderate fluctuation over the years. Starting at 4,168 million USD in 2018, it decreased slightly in 2019 to 4,012 million USD, then increased to 4,369 million USD in 2020. Afterward, it declined consistently, reaching 3,760 million USD in 2021 and further dropping to 3,372 million USD in 2022. This pattern indicates a weakening operational cash flow generation after 2020.
- EV/EBITDA Ratio
- The EV/EBITDA ratio, indicative of valuation relative to earnings, displayed an increasing trend throughout the period. It rose from 15.21 in 2018 to 18.1 in 2019, then slightly decreased to 16.91 in 2020 before increasing significantly in the following years, reaching 19.49 in 2021 and peaking at 20.41 in 2022. This rising ratio suggests that the company's valuation became more expensive relative to its earnings, likely reflecting market expectations or growth potential despite declining EBITDA.