Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Mosaic Co., EBITDA calculation
US$ in thousands
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).
The financial trajectory from 2017 to 2021 is characterized by extreme volatility, featuring a severe contraction in 2019 followed by an aggressive recovery and expansion phase that peaked in 2021.
- EBITDA Trend Analysis
- EBITDA exhibited an initial upward trend, increasing from 1,227,500 thousand USD in 2017 to 1,646,700 thousand USD in 2018. A sharp reversal occurred in 2019, with EBITDA falling to a negative 216,800 thousand USD. A strong recovery followed in 2020, reaching 1,148,800 thousand USD, and culminated in a significant surge to 3,239,800 thousand USD by December 31, 2021.
- Comparative Profitability Volatility
- A systemic correlation is observed across all profitability tiers, including Net earnings, EBT, and EBIT. The year 2019 served as a critical low point across all metrics; Net earnings reached -1,067,400 thousand USD and EBIT reached -1,099,500 thousand USD. The subsequent growth in 2021 was the most pronounced, with Net earnings rising to 1,630,600 thousand USD and EBT increasing to 2,232,600 thousand USD, representing a comprehensive reversal of the previous losses.
- Operational Impact of Depreciation and Amortization
- A consistent divergence is maintained between EBIT and EBITDA, indicating substantial non-cash expenses. For instance, in 2021, the difference between EBITDA (3,239,800 thousand USD) and EBIT (2,426,900 thousand USD) underscores a significant depreciation and amortization load. This pattern suggests a capital-intensive operational structure where EBITDA provides a more robust view of cash-generating capacity compared to the EBIT and Net earnings figures.
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Enterprise Value to EBITDA Ratio, Current
Mosaic Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 22,430,053) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,239,800) |
| Valuation Ratio | |
| EV/EBITDA | 6.92 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Linde plc | 18.09 |
| Sherwin-Williams Co. | 20.11 |
| EV/EBITDA, Sector | |
| Chemicals | 24.24 |
| EV/EBITDA, Industry | |
| Materials | 18.51 |
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
Mosaic Co., 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 thousands) | ||||||
| Enterprise value (EV)1 | 21,047,779) | 16,076,972) | 12,013,679) | 15,543,777) | 14,060,312) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,239,800) | 1,148,800) | (216,800) | 1,646,700) | 1,227,500) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 6.50 | 13.99 | — | 9.44 | 11.45 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Linde plc | 16.23 | — | — | — | — | |
| Sherwin-Williams Co. | 25.04 | — | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Chemicals | 18.35 | — | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Materials | 13.46 | — | — | — | — | |
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
= 21,047,779 ÷ 3,239,800 = 6.50
4 Click competitor name to see calculations.
The financial period between 2017 and 2021 is characterized by significant volatility in operational earnings and a corresponding fluctuation in valuation multiples. While the enterprise value generally trended upward over the five-year duration, the earnings before interest, tax, depreciation, and amortization (EBITDA) experienced a severe contraction in 2019 before reaching a peak in 2021.
- Enterprise Value Trends
- Enterprise value demonstrated a general growth trajectory, rising from approximately 14.06 billion US dollars in 2017 to 21.05 billion US dollars by 2021. A notable contraction occurred in 2019, where the value dipped to 12.01 billion US dollars, before recovering strongly over the subsequent two years.
- EBITDA Performance
- Operational earnings exhibited extreme volatility. After growing from 1.23 billion US dollars in 2017 to 1.65 billion US dollars in 2018, EBITDA fell to a negative 216.8 million US dollars in 2019. A recovery followed in 2020, culminating in a significant surge to 3.24 billion US dollars in 2021, the highest value in the analyzed period.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio fluctuated in response to the instability of earnings. The ratio decreased from 11.45 in 2017 to 9.44 in 2018, and was unavailable in 2019 due to negative EBITDA. In 2020, the ratio peaked at 13.99 as earnings recovered. By 2021, the ratio dropped to its lowest point of 6.50, indicating that the growth in EBITDA significantly outpaced the increase in enterprise value, resulting in a lower valuation multiple.
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