Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
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. | McKesson Corp. EBITDA increased from 2014 to 2015 and from 2015 to 2016. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 40,477) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,488) |
Valuation Ratio | |
EV/EBITDA | 9.02 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Abbott Laboratories | 19.94 |
Cigna Group | 11.05 |
CVS Health Corp. | 7.03 |
Elevance Health Inc. | 8.42 |
Humana Inc. | 5.39 |
Intuitive Surgical Inc. | 74.98 |
Medtronic PLC | 16.19 |
UnitedHealth Group Inc. | 16.07 |
Based on: 10-K (reporting date: 2016-03-31).
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
Mar 31, 2016 | Mar 31, 2015 | Mar 31, 2014 | Mar 31, 2013 | Mar 31, 2012 | Mar 31, 2011 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 43,051) | 57,740) | 49,411) | 27,034) | 22,057) | 21,278) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,488) | 4,048) | 3,103) | 2,750) | 2,721) | 2,353) | |
Valuation Ratio | |||||||
EV/EBITDA3 | 9.59 | 14.26 | 15.92 | 9.83 | 8.11 | 9.04 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Abbott Laboratories | — | — | — | — | — | — | |
Cigna Group | — | — | — | — | — | — | |
CVS Health Corp. | — | — | — | — | — | — | |
Elevance Health Inc. | — | — | — | — | — | — | |
Humana Inc. | — | — | — | — | — | — | |
Intuitive Surgical Inc. | — | — | — | — | — | — | |
Medtronic PLC | — | — | — | — | — | — | |
UnitedHealth Group Inc. | — | — | — | — | — | — |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).
3 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= 43,051 ÷ 4,488 = 9.59
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. | McKesson Corp. EV/EBITDA ratio decreased from 2014 to 2015 and from 2015 to 2016. |