Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Waste Management Inc., EBITDA calculation
US$ in millions
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).
| 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. | Waste Management Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Enterprise Value to EBITDA Ratio, Current
Waste Management Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 72,442) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,723) |
| Valuation Ratio | |
| EV/EBITDA | 15.34 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Cintas Corp. | 32.69 |
| EV/EBITDA, Industry | |
| Industrials | 20.08 |
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
Waste Management Inc., 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 millions) | ||||||
| Enterprise value (EV)1 | 72,442) | 60,043) | 62,701) | 51,852) | 45,929) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,723) | 4,021) | 4,143) | 4,237) | 3,935) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 15.34 | 14.93 | 15.13 | 12.24 | 11.67 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Cintas Corp. | 23.81 | 22.07 | 18.91 | — | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 16.42 | 30.48 | — | — | — | |
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
= 72,442 ÷ 4,723 = 15.34
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. | Waste Management Inc. EV/EBITDA ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |