Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Monsanto Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
- Net income attributable to Monsanto Company
- The net income demonstrated an upward trend from 2012 to 2014, increasing from $2,045 million to a peak of $2,740 million. However, there was a notable decline in 2015 followed by a sharp decrease in 2016, dropping to $1,336 million. In 2017, the net income rebounded significantly to $2,260 million, indicating partial recovery but still below the 2014 peak.
- Earnings before tax (EBT)
- Earnings before tax showed a similar pattern to net income, rising from $2,988 million in 2012 to a high of $3,827 million in 2014. This was followed by a decline in 2015 and a more pronounced fall in 2016 to $1,991 million. In 2017, EBT improved to $2,886 million, recovering some but not all of the previous losses.
- Earnings before interest and tax (EBIT)
- EBIT followed an overall increasing trajectory from 2012 through 2014, reaching $4,075 million. It then dropped in 2015 to $3,594 million and further decreased sharply in 2016 to $2,427 million. The 2017 figure rose again to $3,338 million, showing resilience but remaining below the peak levels of 2014.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA increased steadily from $3,801 million in 2012 to $4,766 million in 2014. Following this peak, there was a decline in 2015 and a substantial drop in 2016 to $3,154 million. In 2017, EBITDA improved to $4,086 million, indicating a recovery trend while not fully reaching the highest prior levels.
- Overall Insights
- Across all profitability measures, the company experienced growth from 2012 through 2014, reaching peaks in that year. From 2015 onwards, there was a decline that was most severe in 2016, suggesting a period of financial difficulty or adverse market conditions. The partial recovery seen in 2017 across all metrics implies some improvement in operational performance or market environment, though none of the measures returned to the peak values observed in 2014. This pattern suggests cyclicality or transitional challenges in the company's financial performance during the period analyzed.
Enterprise Value to EBITDA Ratio, Current
Monsanto Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 58,374) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,086) |
| Valuation Ratio | |
| EV/EBITDA | 14.29 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| lululemon athletica inc. | 8.66 |
| Nike Inc. | 13.27 |
Based on: 10-K (reporting date: 2017-08-31).
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
Monsanto Co., historical EV/EBITDA calculation, comparison to benchmarks
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 59,773) | 52,204) | 46,537) | 59,696) | 54,950) | 46,106) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,086) | 3,154) | 4,310) | 4,766) | 4,216) | 3,801) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 14.63 | 16.55 | 10.80 | 12.53 | 13.03 | 12.13 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| lululemon athletica inc. | — | — | — | — | — | — | |
| Nike Inc. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).
3 2017 Calculation
EV/EBITDA = EV ÷ EBITDA
= 59,773 ÷ 4,086 = 14.63
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited an overall upward trend from 2012 to 2017, increasing from 46,106 million USD in 2012 to 59,773 million USD in 2017. However, the trajectory was not strictly linear; there was a notable decline in 2015, when the value decreased to 46,537 million USD from a peak of 59,696 million USD in 2014. Following this dip, the EV rose again in the subsequent years, reaching its highest point in 2017.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA generally increased during the period from 2012 to 2014, moving from 3,801 million USD to 4,766 million USD. After peaking in 2014, EBITDA demonstrated a decline over the next two years, falling to 3,154 million USD in 2016. It recovered somewhat in 2017, reaching 4,086 million USD, though it did not surpass the previous high levels seen in 2013 and 2014.
- EV/EBITDA Ratio
- The EV to EBITDA ratio showed variable fluctuations across the years examined. Starting at 12.13 in 2012, it increased to over 13 in 2013, then slightly decreased to approximately 12.53 in 2014. Notably, in 2015 the ratio fell to its lowest point at 10.8, indicating comparatively higher EBITDA relative to EV at that time. Subsequently, the ratio rose significantly in 2016, peaking at 16.55, suggesting that enterprise value was high relative to EBITDA, possibly reflecting valuation premiums or reduced earnings. In 2017, the ratio declined to 14.63 but remained elevated compared to earlier years.
- Summary of Trends and Insights
- The enterprise value and EBITDA displayed somewhat divergent trends after 2014; while EV experienced a dip and subsequent recovery, EBITDA declined sharply in 2015 and 2016 before partial recovery. This divergence is reflected in the EV/EBITDA ratio, which reached its lowest point when EBITDA was relatively strong compared to EV and peaked when EBITDA was at its lowest point relative to EV. The elevated EV/EBITDA ratios in 2016 and 2017 may point to market conditions or strategic factors impacting valuation independent of current operational earnings. The data suggests volatility in both enterprise valuation and operating performance, with 2016 marked as a particularly challenging year in terms of earnings.