Stock Analysis on Net

General Dynamics Corp. (NYSE:GD)

This company has been moved to the archive! The financial data has not been updated since October 28, 2020.

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

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

General Dynamics Corp., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings 3,484 3,345 2,912 2,955 2,965
Less: Discontinued operations, net of tax (13) (107)
Add: Income tax expense 718 727 1,165 1,169 1,137
Earnings before tax (EBT) 4,202 4,085 4,077 4,231 4,102
Add: Interest expense 472 374 117 99 98
Earnings before interest and tax (EBIT) 4,674 4,459 4,194 4,330 4,200
Add: Depreciation of property, plant and equipment 466 493 362 366 366
Add: Amortization of intangible and finance lease right-of-use assets 363 270 79 88 116
Earnings before interest, tax, depreciation and amortization (EBITDA) 5,503 5,222 4,635 4,784 4,682

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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. General Dynamics Corp. EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

General Dynamics Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 49,032
Earnings before interest, tax, depreciation and amortization (EBITDA) 5,503
Valuation Ratio
EV/EBITDA 8.91
Benchmarks
EV/EBITDA, Competitors1
Boeing Co. 54.71
Caterpillar Inc. 13.64
Eaton Corp. plc 30.41
GE Aerospace 14.35
Honeywell International Inc. 17.62
Lockheed Martin Corp. 13.67
RTX Corp. 20.35
EV/EBITDA, Sector
Capital Goods 20.64
EV/EBITDA, Industry
Industrials 23.01

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

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

General Dynamics Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 64,971 61,457 63,216 56,968 41,768
Earnings before interest, tax, depreciation and amortization (EBITDA)2 5,503 5,222 4,635 4,784 4,682
Valuation Ratio
EV/EBITDA3 11.81 11.77 13.64 11.91 8.92
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 17.56

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 64,971 ÷ 5,503 = 11.81

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. General Dynamics Corp. EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.