Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Northrop Grumman Corp., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
| 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. | Northrop Grumman Corp. EBITDA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Enterprise Value to EBITDA Ratio, Current
Northrop Grumman Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 79,803) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,684) |
| Valuation Ratio | |
| EV/EBITDA | 10.39 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 55.00 |
| Caterpillar Inc. | 14.72 |
| Eaton Corp. plc | 30.31 |
| GE Aerospace | 14.57 |
| Honeywell International Inc. | 16.88 |
| Lockheed Martin Corp. | 14.06 |
| RTX Corp. | 20.69 |
| EV/EBITDA, Sector | |
| Capital Goods | 24.18 |
| EV/EBITDA, Industry | |
| Industrials | 21.20 |
Based on: 10-K (reporting date: 2022-12-31).
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
Northrop Grumman Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 78,175) | 67,634) | 58,949) | 76,153) | 59,592) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,684) | 10,733) | 5,588) | 4,341) | 5,104) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 10.17 | 6.30 | 10.55 | 17.54 | 11.68 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | — | — | — | 284.02 | — | |
| Caterpillar Inc. | 13.86 | 12.43 | 19.87 | 9.66 | — | |
| Eaton Corp. plc | 19.18 | 17.06 | 22.11 | 12.86 | — | |
| GE Aerospace | 14.82 | 95.57 | 9.35 | 13.66 | — | |
| Honeywell International Inc. | 18.01 | 15.57 | 20.21 | 14.95 | — | |
| Lockheed Martin Corp. | 14.98 | 11.97 | 9.97 | 14.86 | — | |
| RTX Corp. | 14.92 | 15.48 | 41.71 | 12.60 | — | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 19.01 | 19.87 | 25.02 | 16.22 | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 17.07 | 16.21 | 26.87 | 17.56 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 78,175 ÷ 7,684 = 10.17
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. | Northrop Grumman Corp. EV/EBITDA ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |