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

Emerson Electric Co., EBITDA calculation

US$ in millions

12 months ended:	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Net earnings common stockholders	2,306)	2,203)	1,518)	1,635)	2,710)	2,147)
Add: Net income attributable to noncontrolling interest	22)	21)	32)	29)	23)	37)
Less: Discontinued operations, net of tax	—)	—)	(125)	45)	—)	—)
Add: Income tax expense	531)	443)	660)	697)	1,428)	1,164)
Earnings before tax (EBT)	2,859)	2,667)	2,335)	2,316)	4,161)	3,348)
Add: Interest expense	201)	202)	201)	215)	200)	218)
Earnings before interest and tax (EBIT)	3,060)	2,869)	2,536)	2,531)	4,361)	3,566)
Add: Depreciation and amortization	822)	758)	636)	568)	815)	831)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,882)	3,627)	3,172)	3,099)	5,176)	4,397)

Based on: 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), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

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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.	Emerson Electric Co. EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Emerson Electric Co., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	36,423)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,882)
Valuation Ratio
EV/EBITDA	9.38
Benchmarks
EV/EBITDA, Competitors¹
Boeing Co.	61.39
Caterpillar Inc.	13.78
Eaton Corp. plc	29.27
GE Aerospace	14.74
Honeywell International Inc.	17.33
Lockheed Martin Corp.	12.66
RTX Corp.	20.62
EV/EBITDA, Sector
Capital Goods	20.75
EV/EBITDA, Industry
Industrials	23.58

Based on: 10-K (reporting date: 2019-09-30).

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.

Emerson Electric Co., historical EV/EBITDA calculation, comparison to benchmarks

	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	48,778)	46,577)	40,322)	38,847)	36,569)	47,420)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	3,882)	3,627)	3,172)	3,099)	5,176)	4,397)
Valuation Ratio
EV/EBITDA³	12.57	12.84	12.71	12.54	7.07	10.78
Benchmarks
EV/EBITDA, Competitors⁴
Boeing Co.	284.02	—	—	—	—	—
Caterpillar Inc.	9.66	—	—	—	—	—
Eaton Corp. plc	12.86	—	—	—	—	—
GE Aerospace	13.66	—	—	—	—	—
Honeywell International Inc.	14.95	—	—	—	—	—
Lockheed Martin Corp.	14.86	—	—	—	—	—
RTX Corp.	12.60	—	—	—	—	—
EV/EBITDA, Sector
Capital Goods	16.22	—	—	—	—	—
EV/EBITDA, Industry
Industrials	17.59	—	—	—	—	—

Based on: 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), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30).

¹ See details »

² See details »

³ 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 48,778 ÷ 3,882 = 12.57

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.	Emerson Electric Co. EV/EBITDA ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Emerson Electric Co. (NYSE:EMR)

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