Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
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. | Raytheon Co. EBITDA increased from 2017 to 2018 and from 2018 to 2019. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 64,443) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,771) |
Valuation Ratio | |
EV/EBITDA | 13.51 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Boeing Co. | — |
Caterpillar Inc. | 10.52 |
Eaton Corp. plc | 18.47 |
GE Aerospace | 18.79 |
Honeywell International Inc. | 15.08 |
Lockheed Martin Corp. | 13.56 |
RTX Corp. | 15.48 |
Based on: 10-K (reporting date: 2019-12-31).
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
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 64,443) | 52,515) | 62,981) | 46,438) | 40,176) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,771) | 3,899) | 3,868) | 3,777) | 3,509) | |
Valuation Ratio | ||||||
EV/EBITDA3 | 13.51 | 13.47 | 16.28 | 12.29 | 11.45 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Boeing Co. | — | — | — | — | — | |
Caterpillar Inc. | — | — | — | — | — | |
Eaton Corp. plc | — | — | — | — | — | |
GE Aerospace | — | — | — | — | — | |
Honeywell International Inc. | — | — | — | — | — | |
Lockheed Martin Corp. | — | — | — | — | — | |
RTX Corp. | — | — | — | — | — |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 64,443 ÷ 4,771 = 13.51
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. | Raytheon Co. EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |