Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Sysco Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
- Net Earnings
- Net earnings exhibited significant volatility over the analyzed periods. There was a sharp decline from 1,674 million US dollars in 2019 to 215 million in 2020, which may reflect extraordinary circumstances affecting profitability that year. Subsequently, net earnings recovered steadily, reaching 524 million in 2021, rising notably to 1,359 million in 2022, and continuing to increase to 1,770 million in 2023 and 1,955 million in 2024. This overall trend suggests a strong rebound and sustained growth in profitability after the dip observed in 2020.
- Earnings Before Tax (EBT)
- EBT follows a pattern similar to net earnings, starting at 2,006 million in 2019 and dropping sharply to 293 million in 2020. A gradual recovery is visible thereafter, with values increasing to 585 million in 2021 and then surging to 1,747 million in 2022. The upward trajectory continued with further growth to 2,285 million in 2023 and 2,565 million in 2024. The data indicates a restoration of pre-2020 earnings levels and progressive improvement in pre-tax profitability.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated resilience, albeit with a less pronounced dip compared to net earnings and EBT. From 2,366 million in 2019, it decreased to 702 million in 2020 but then increased consistently through subsequent years, reaching 1,465 million in 2021 and climbing to 2,370 million in 2022. Growth continued in 2023 and 2024, with EBIT measured at 2,812 million and 3,172 million, respectively. This steady recovery and growth in EBIT indicates effective operational performance improvement over the period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA shows a marked pattern of decline followed by robust recovery and growth. It declined from 3,130 million in 2019 to 1,507 million in 2020, reflecting reduced earnings capacity possibly linked to external challenges. From 2021 onward, EBITDA increased steadily to 2,203 million, then surged to 3,143 million in 2022. The upward trend continued into 2023 and 2024, reaching 3,588 million and 4,045 million respectively. Such sustained growth in EBITDA suggests enhanced operational cash flow generation capacity and improved earnings quality.
Enterprise Value to EBITDA Ratio, Current
Sysco Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 48,971) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,045) |
| Valuation Ratio | |
| EV/EBITDA | 12.11 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Costco Wholesale Corp. | 35.73 |
| Target Corp. | 6.76 |
| Walmart Inc. | 19.71 |
| EV/EBITDA, Sector | |
| Consumer Staples Distribution & Retail | 23.14 |
| EV/EBITDA, Industry | |
| Consumer Staples | 20.19 |
Based on: 10-K (reporting date: 2024-06-29).
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
Sysco Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | Jun 27, 2020 | Jun 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 48,971) | 44,889) | 52,106) | 48,525) | 37,628) | 45,291) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,045) | 3,588) | 3,143) | 2,203) | 1,507) | 3,130) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 12.11 | 12.51 | 16.58 | 22.03 | 24.96 | 14.47 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Costco Wholesale Corp. | 32.85 | 22.66 | 21.19 | 22.64 | 21.69 | 20.13 | |
| Target Corp. | 10.37 | 13.52 | 9.00 | 10.35 | 8.50 | — | |
| Walmart Inc. | 14.63 | 13.92 | 13.94 | 12.01 | 11.12 | — | |
| EV/EBITDA, Sector | |||||||
| Consumer Staples Distribution & Retail | 17.87 | 15.84 | 14.18 | 13.50 | 12.30 | — | |
| EV/EBITDA, Industry | |||||||
| Consumer Staples | 17.62 | 16.39 | 16.42 | 15.65 | 14.89 | — | |
Based on: 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03), 10-K (reporting date: 2020-06-27), 10-K (reporting date: 2019-06-29).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 48,971 ÷ 4,045 = 12.11
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trend
- The enterprise value experienced a decrease from 45,291 million USD in June 2019 to 37,628 million USD in June 2020, followed by a rebound to 48,525 million USD in July 2021. It then showed a gradual increase to 52,106 million USD in July 2022, before declining again to 44,889 million USD in July 2023. In the latest period of June 2024, the value rose to 48,971 million USD. This pattern indicates some volatility with periods of both contraction and expansion over the six-year span.
- EBITDA Performance
- EBITDA exhibited a notable decline from 3,130 million USD in June 2019 to 1,507 million USD in June 2020. Afterwards, it consistently increased over subsequent years, reaching 2,203 million USD in July 2021 and then sharply rising to 3,143 million USD in July 2022. The growth continued with 3,588 million USD in July 2023 and 4,045 million USD in June 2024. This upward trend after 2020 signals a significant recovery and enhancement in operational profitability.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio rose sharply from 14.47 in June 2019 to a peak of 24.96 in June 2020, reflecting the considerable drop in EBITDA relative to the enterprise value. It then decreased steadily over the following years: 22.03 in July 2021, 16.58 in July 2022, 12.51 in July 2023, and finally, 12.11 in June 2024. This declining ratio trend indicates that the market valuation relative to EBITDA became more reasonable and suggests improved earnings performance relative to enterprise value.
- Overall Observations
- The data demonstrates a significant dip in profitability and valuation during 2020, likely indicative of external or operational challenges during that period. However, the subsequent recovery in EBITDA and the normalization of the EV/EBITDA ratio reveal an improving financial position with enhanced earnings generation capacity at more sustainable valuations. The enterprise value’s fluctuations appear to reflect market adjustments in response to earnings trends and broader economic conditions.