Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Illinois Tool Works Inc., EBITDA calculation
US$ in millions
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. | Illinois Tool Works Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Enterprise Value to EBITDA Ratio, Current
Illinois Tool Works Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 74,291) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,805) |
| Valuation Ratio | |
| EV/EBITDA | 19.52 |
| 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 | 25.95 |
| EV/EBITDA, Industry | |
| Industrials | 19.16 |
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
Illinois Tool Works 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 millions) | ||||||
| Enterprise value (EV)1 | 74,291) | 69,202) | 65,683) | 53,197) | 61,033) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,805) | 3,183) | 3,776) | 3,923) | 3,786) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 19.52 | 21.74 | 17.39 | 13.56 | 16.12 | |
| 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
= 74,291 ÷ 3,805 = 19.52
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. | Illinois Tool Works Inc. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |