Intuitive Surgical Inc. (ISRG)

Enterprise Value to EBITDA (EV/EBITDA)

Difficulty: Intermediate

Intuitive Surgical Inc., EBITDA calculation

USD $ in thousands

	12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net income attributable to Intuitive Surgical, Inc.
	Add: Net income attributable to noncontrolling interest
	Add: Income tax expense
	Earnings before tax (EBT)
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Add: Depreciation and loss on disposal of property, plant, and equipment, net
	Add: Amortization of intangible assets
	Earnings before interest, tax, depreciation and amortization (EBITDA)

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.	Intuitive Surgical Inc.’s EBITDA increased from 2016 to 2017 and from 2017 to 2018.

Intuitive Surgical Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (USD $ in thousands)
Enterprise value (EV)
Earnings before interest, tax, depreciation and amortization (EBITDA)
Ratio
EV/EBITDA
Benchmarks
EV/EBITDA, Competitors
Becton, Dickinson & Co.
Medtronic PLC
Stryker Corp.
Thermo Fisher Scientific Inc.
UnitedHealth Group Inc.
EV/EBITDA, Sector
Health Care Equipment & Services
EV/EBITDA, Industry
Health Care

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.

Intuitive Surgical Inc., historical EV/EBITDA calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Selected Financial Data (USD $ in thousands)
	Enterprise value (EV)¹
	Earnings before interest, tax, depreciation and amortization (EBITDA)²
	Ratio
	EV/EBITDA³
	Benchmarks
	EV/EBITDA, Competitors
	Becton, Dickinson & Co.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	EV/EBITDA, Sector
	Health Care Equipment & Services
	EV/EBITDA, Industry
	Health Care

2018 Calculations

³ EV/EBITDA = EV ÷ EBITDA
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/EBITDA	EV/EBITDA is a valuation indicator for the overall company rather than common stock.	Intuitive Surgical Inc.’s EV/EBITDA ratio increased from 2016 to 2017 and from 2017 to 2018.

	Intuitive Surgical Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality