Enterprise Value to EBITDA (EV/EBITDA)
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).
| 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. | Generac Holdings Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021. |
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) | 16,922,251) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 816,520) |
| Valuation Ratio | |
| EV/EBITDA | 20.72 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 54.00 |
| Caterpillar Inc. | 13.89 |
| Eaton Corp. plc | 31.26 |
| GE Aerospace | 14.41 |
| Honeywell International Inc. | 17.58 |
| Lockheed Martin Corp. | 13.83 |
| RTX Corp. | 20.54 |
| EV/EBITDA, Sector | |
| Capital Goods | 26.18 |
| EV/EBITDA, Industry | |
| Industrials | 19.33 |
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 | 18,849,998) | 21,165,351) | 7,290,571) | 3,929,062) | 3,669,977) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 816,520) | 547,955) | 422,060) | 399,440) | 299,343) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 23.09 | 38.63 | 17.27 | 9.84 | 12.26 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | — | — | 284.02 | — | — | |
| Caterpillar Inc. | 12.43 | 19.87 | 9.66 | — | — | |
| Eaton Corp. plc | 17.06 | 22.11 | 12.86 | — | — | |
| GE Aerospace | 95.57 | 9.35 | 13.66 | — | — | |
| Honeywell International Inc. | 15.57 | 20.21 | 14.95 | — | — | |
| Lockheed Martin Corp. | 11.97 | 9.97 | 14.86 | — | — | |
| RTX Corp. | 15.48 | 41.71 | 12.60 | — | — | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 19.87 | 25.02 | 16.22 | — | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 16.21 | 26.87 | 17.56 | — | — | |
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
= 18,849,998 ÷ 816,520 = 23.09
4 Click competitor name to see calculations.
| 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. | Generac Holdings Inc. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |