Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Hershey Co., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
| 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. | Hershey Co. EBITDA increased from 2020 to 2021 and from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Hershey Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 52,082,977) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,436,125) |
| Valuation Ratio | |
| EV/EBITDA | 21.38 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | 19.22 |
| Mondelēz International Inc. | 11.21 |
| PepsiCo Inc. | 13.88 |
| Philip Morris International Inc. | 18.43 |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | 18.48 |
| EV/EBITDA, Industry | |
| Consumer Staples | 21.85 |
Based on: 10-K (reporting date: 2022-12-31).
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
Hershey Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 53,436,870) | 46,279,575) | 34,804,244) | 37,362,005) | 26,861,195) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,436,125) | 2,242,072) | 1,943,375) | 1,824,450) | 1,852,063) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 21.94 | 20.64 | 17.91 | 20.48 | 14.50 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Coca-Cola Co. | 20.83 | 19.52 | 19.66 | 21.79 | — | |
| Mondelēz International Inc. | 21.64 | 15.62 | 15.14 | 18.69 | — | |
| PepsiCo Inc. | 18.63 | 18.42 | 17.17 | — | — | |
| Philip Morris International Inc. | 14.78 | 13.64 | 12.59 | 13.77 | — | |
| EV/EBITDA, Sector | ||||||
| Food, Beverage & Tobacco | 18.49 | 17.05 | 16.29 | — | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Staples | 16.42 | 15.65 | 14.89 | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 53,436,870 ÷ 2,436,125 = 21.94
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. | Hershey Co. EV/EBITDA ratio increased from 2020 to 2021 and from 2021 to 2022. |