Enterprise Value to EBITDA (EV/EBITDA)
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Humana Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Humana Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
The financial data reveals several notable trends over the five-year period. Net income attributable to the company showed a significant increase from 2019 to 2020, peaking at 3,367 million USD, followed by a gradual decline each subsequent year, reaching 2,489 million USD in 2023. This downward trend after 2020 indicates a reduction in profitability.
Earnings before tax (EBT) experienced a similar pattern. The figure increased substantially in 2020 to 4,674 million USD from 3,470 million USD in 2019, then declined notably in 2021 to 3,419 million USD. Although there was a modest recovery in 2022 to 3,564 million USD, the value dropped again in 2023 to 3,320 million USD, suggesting fluctuating operational performance post-2020.
Earnings before interest and tax (EBIT) followed the general trend of growth in 2020, rising to 4,957 million USD from 3,712 million USD in 2019, then decreasing in 2021 to 3,745 million USD. It slightly improved in 2022 to 3,965 million USD but slightly declined again to 3,813 million USD in 2023. This pattern points to variability in core operational earnings after an initial strong performance in 2020.
Earnings before interest, tax, depreciation, and amortization (EBITDA) also increased significantly in 2020, reaching 5,573 million USD from 4,287 million USD in 2019. Subsequently, there was a decline in 2021 to 4,458 million USD, a moderate recovery in 2022 to 4,810 million USD, and a slight reduction in 2023 to 4,730 million USD. EBITDA volatility mirrors trends seen in EBIT and EBT, indicating that operational cash flow experienced similar fluctuations.
- Summary of financial trends:
- - The year 2020 marks a peak across all earnings metrics, reflecting a strong financial performance during that period.
- - From 2021 onward, all earnings measures demonstrate a declining or fluctuating trend, signaling challenges in maintaining growth or profitability levels achieved in 2020.
- - The declines in net income are more pronounced compared to EBT, EBIT, and EBITDA, suggesting increased expenses, taxes, or other factors affecting the bottom line beyond operational earnings.
- - Earnings volatility through the years post-2020 may warrant further investigation into external factors or internal changes affecting financial outcomes.
Enterprise Value to EBITDA Ratio, Current
Humana Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2023-12-31).
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
Humana Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2023-12-31), 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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced fluctuations over the analyzed periods. Initially, it decreased from approximately 39.9 billion USD in 2019 to 38.5 billion USD in 2020. This was followed by a substantial increase to about 50.0 billion USD in 2021 and a further rise to 55.7 billion USD in 2022. However, in 2023, there was a notable decline, dropping to approximately 34.7 billion USD.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- EBITDA showed variability across the years. The figure grew significantly from 4.3 billion USD in 2019 to 5.6 billion USD in 2020. Nevertheless, it then declined to 4.5 billion USD in 2021. A moderate recovery occurred in 2022, reaching 4.8 billion USD, followed by a slight decrease to 4.7 billion USD in 2023.
- EV/EBITDA Ratio
- The EV/EBITDA ratio demonstrated notable volatility. Starting at 9.3 in 2019, it decreased to 6.91 in 2020, indicating a relatively more favorable valuation in relation to EBITDA. In 2021 and 2022, the ratio increased significantly to 11.22 and 11.59, respectively, implying a higher valuation multiple. The ratio then declined to 7.33 in 2023, suggesting a reversion to a lower valuation level relative to EBITDA.