Enterprise Value to EBITDA (EV/EBITDA)

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

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

Eaton Corp. plc, EBITDA calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Eaton ordinary shareholders	3,218)	2,462)	2,144)	1,410)	2,211)
Add: Net income attributable to noncontrolling interest	5)	4)	2)	5)	2)
Add: Income tax expense	604)	445)	750)	331)	378)
Earnings before tax (EBT)	3,827)	2,911)	2,896)	1,746)	2,591)
Add: Interest expense, net	151)	144)	144)	149)	236)
Earnings before interest and tax (EBIT)	3,978)	3,055)	3,040)	1,895)	2,827)
Add: Depreciation and amortization	926)	954)	922)	811)	884)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,904)	4,009)	3,962)	2,706)	3,711)

Based on: 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), 10-K (reporting date: 2019-12-31).

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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.	Eaton Corp. plc EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Eaton Corp. plc, current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	150,423)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,904)
Valuation Ratio
EV/EBITDA	30.67
Benchmarks
EV/EBITDA, Competitors¹
Boeing Co.	54.58
Caterpillar Inc.	13.67
GE Aerospace	14.32
Honeywell International Inc.	17.73
Lockheed Martin Corp.	13.64
RTX Corp.	20.33
EV/EBITDA, Sector
Capital Goods	18.06
EV/EBITDA, Industry
Industrials	16.52

Based on: 10-K (reporting date: 2023-12-31).

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

Eaton Corp. plc, historical EV/EBITDA calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	122,149)	76,903)	67,594)	59,819)	47,708)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	4,904)	4,009)	3,962)	2,706)	3,711)
Valuation Ratio
EV/EBITDA³	24.91	19.18	17.06	22.11	12.86
Benchmarks
EV/EBITDA, Competitors⁴
Boeing Co.	71.32	—	—	—	284.02
Caterpillar Inc.	12.16	13.86	12.43	19.87	9.66
GE Aerospace	11.06	14.82	95.57	9.35	13.66
Honeywell International Inc.	15.55	18.01	15.57	20.21	14.95
Lockheed Martin Corp.	11.71	14.98	11.97	9.97	14.86
RTX Corp.	16.62	14.92	15.48	41.71	12.60
EV/EBITDA, Sector
Capital Goods	16.03	19.01	19.87	25.02	16.22
EV/EBITDA, Industry
Industrials	15.63	17.07	16.21	26.87	17.56

Based on: 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), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 122,149 ÷ 4,904 = 24.91

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.	Eaton Corp. plc EV/EBITDA ratio increased from 2021 to 2022 and from 2022 to 2023.

Eaton Corp. plc (NYSE:ETN)

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