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E.I. DuPont de Nemours & Co. (DD) | Enterprise Value to EBITDA (EV/EBITDA)

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

E.I. DuPont de Nemours & Co., EBITDA calculation

USD $ in millions

12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Net income attributable to DuPont	3,474	3,031	1,755	2,007	2,988
Add: Net income attributable to noncontrolling interests	36	21	14	3	7
Add: Interest expense	447	590	408	376	430
Add: Income tax expense (benefit)	772	659	415	381	748
Earnings before interest and tax (EBIT)	4,729	4,301	2,592	2,767	4,173
Add: Depreciation	1,283	1,204	1,251	1,169	1,158
Add: Amortization of intangible assets	277	176	252	275	213
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,289	5,681	4,095	4,211	5,544

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.	E.I. DuPont de Nemours & Co.'s EBITDA increased from 2009 to 2010 and from 2010 to 2011.

E.I. DuPont de Nemours & Co., current EV/EBITDA

	E.I. DuPont de Nemours & Co.	Basic Materials
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	54,669
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,289
Ratio
EV/EBITDA	8.69	5.19

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.

E.I. DuPont de Nemours & Co., EV/EBITDA calculation

	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	57,773	53,672	35,514	27,287	48,136
Earnings before interest, tax, depreciation and amortization (EBITDA)	6,289	5,681	4,095	4,211	5,544
EV/EBITDA, Comparison to Industry
E.I. DuPont de Nemours & Co.¹	9.19	9.45	8.67	6.48	8.68
Industry, Basic Materials	5.91	7.52	13.26	6.40	9.47

2011 Calculations

¹ EV/EBITDA = EV ÷ EBITDA
= 57,773 ÷ 6,289 = 9.19

Ratio	Description	The company
EV/EBITDA	EV/EBITDA is a valuation indicator for the overall company rather than common stock.	E.I. DuPont de Nemours & Co.'s EV/EBITDA ratio increased from 2009 to 2010 but then slightly declined from 2010 to 2011.