Enterprise Value to EBITDA (EV/EBITDA)
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2010
- Return on Equity (ROE) since 2010
- Current Ratio since 2010
- Price to Operating Profit (P/OP) since 2010
- Analysis of Revenues
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Generac Holdings Inc., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2017-12-31).
- Net income attributable to Generac Holdings Inc.
- The net income shows a consistent upward trend over the five-year period. Beginning at $159.4 million in 2017, it increased steadily each year, reaching $550.5 million in 2021. The most significant growth occurred between 2020 and 2021, with net income increasing by approximately 57%, indicating improved profitability and operational efficiency.
- Earnings before tax (EBT)
- EBT also demonstrates a strong positive trajectory from $204.7 million in 2017 to $691.5 million in 2021. The year-on-year growth is marked and especially pronounced between 2020 and 2021, aligning with the net income trend. This suggests that the company experienced increasing profitability before accounting for taxes, which is indicative of effective cost management and possibly increased revenue generation.
- Earnings before interest and tax (EBIT)
- EBIT values increased steadily from $247.4 million in 2017 to $724.5 million in 2021. This gradual growth reflects enhanced operating performance since EBIT measures earnings derived strictly from operational activities before financing and tax effects. The substantial rise, particularly in the last year, suggests expanding operational profits and efficient management of operating expenses.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- The EBITDA figures reveal a consistent increase, moving from $299.3 million in 2017 to $816.5 million in 2021. As EBITDA excludes non-cash charges such as depreciation and amortization, this rise indicates a growing cash-based earning capacity. The largest annual increase occurred between 2020 and 2021, mirroring trends seen in net income, EBT, and EBIT, and pointing to stronger core earnings and expanded operational cash flow.
Enterprise Value to EBITDA Ratio, Current
Generac Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| 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: 2021-12-31).
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
Generac Holdings Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| 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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a significant upward trend from 2017 to 2020, increasing from approximately $3.67 billion to over $21.17 billion. This sharp rise indicates substantial growth in the market valuation or acquisition activity during this period. However, in 2021, a decline to approximately $18.85 billion was observed, suggesting a reduction in the company's market value or a change in capital structure.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA showed a consistent positive growth over the five-year period. Starting from roughly $299 million in 2017, it increased steadily each year, reaching approximately $816.5 million by 2021. This demonstrates improving operational profitability and possibly enhanced efficiency or expansion.
- EV/EBITDA Ratio
- The EV/EBITDA ratio displayed notable fluctuations. Initially, the ratio decreased from 12.26 in 2017 to 9.84 in 2018, indicating an improvement in valuation relative to earnings. However, it sharply increased to 17.27 in 2019 and then surged further to a peak of 38.63 in 2020. This spike suggests that enterprise value grew disproportionately compared to EBITDA in those years, potentially reflecting heightened market expectations or decreased earnings quality. In 2021, the ratio decreased to 23.09 but remained elevated relative to the initial years, indicating a still high but somewhat moderated valuation multiple.