Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Reynolds American Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
| 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. | Reynolds American Inc. EBITDA increased from 2014 to 2015 and from 2015 to 2016. |
Enterprise Value to EBITDA Ratio, Current
Reynolds American Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 103,094) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 10,440) |
| Valuation Ratio | |
| EV/EBITDA | 9.87 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | 19.44 |
| Mondelēz International Inc. | 11.51 |
| PepsiCo Inc. | 15.25 |
| Philip Morris International Inc. | 18.41 |
Based on: 10-K (reporting date: 2016-12-31).
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
Reynolds American Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 97,440) | 83,957) | 41,466) | 29,415) | 26,890) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 10,440) | 7,076) | 2,654) | 3,103) | 2,318) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 9.33 | 11.87 | 15.62 | 9.48 | 11.60 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Coca-Cola Co. | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
3 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= 97,440 ÷ 10,440 = 9.33
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. | Reynolds American Inc. EV/EBITDA ratio decreased from 2014 to 2015 and from 2015 to 2016. |