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Colgate-Palmolive Co. (CL) | Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Colgate-Palmolive Co., EBITDA calculation

USD $ in millions

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  12 months ended Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Net income attributable to Colgate-Palmolive Company 2,472  2,431  2,203  2,291  1,957 
Net income attributable to noncontrolling interests 159  123  110  106  80 
Interest incurred, less interest capitalized 80  58  65  88  106 
Income tax expense (benefit) 1,243  1,235  1,117  1,141  968 
Earnings before interest and tax (EBIT) 3,954  3,847  3,495  3,626  3,111 
Depreciation and amortization 425  421  376  351  348 
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,379  4,268  3,871  3,977  3,459 
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. Colgate-Palmolive Co.'s EBITDA increased from 2010 to 2011 and from 2011 to 2012.

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EV to EBITDA Ratio, Current

Colgate-Palmolive Co., current EV/EBITDA

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  Colgate-Palmolive Co. Consumer Goods
Selected Financial Data (USD $ in millions)
Enterprise value (EV) 62,120   
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,379   
Ratio
EV/EBITDA 14.19 13.25

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

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EV to EBITDA Ratio, Historical

Colgate-Palmolive Co., EV/EBITDA calculation

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    Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
  Selected Financial Data (USD $ in millions)
Enterprise value (EV)1 57,443  48,862  41,430  43,932  33,699 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,379  4,268  3,871  3,977  3,459 
  EV/EBITDA, Comparison to Industry
Colgate-Palmolive Co.3 13.12 11.45 10.70 11.05 9.74
  Industry, Consumer Goods 11.58 10.24 9.88 10.99 7.99

1 See Details »

2 See Details »

2012 Calculations

3 EV/EBITDA = EV ÷ EBITDA
= 57,443 ÷ 4,379 = 13.12

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Colgate-Palmolive Co.'s EV/EBITDA ratio increased from 2010 to 2011 and from 2011 to 2012.

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