Enterprise Value to EBITDA (EV/EBITDA)
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Keurig Dr Pepper 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).
- Net income attributable to KDP
- Net income demonstrated a consistent upward trend over the four-year period. Starting at $586 million at the end of 2018, net income more than doubled by the end of 2019 to $1,254 million. This growth continued in 2020, reaching $1,325 million, and accelerated further in 2021, culminating at $2,146 million. The increase reflects substantial profitability improvements year over year.
- Earnings before tax (EBT)
- EBT also showed a positive trajectory, increasing significantly from $791 million in 2018 to $1,694 million in 2019. The growth rate slowed slightly in 2020, with a modest increase to $1,753 million. However, in 2021, EBT surged to $2,798 million, representing a strong recovery and expansion in earnings before tax. This trend suggests enhanced operational performance and likely efficiencies in tax management over the period.
- Earnings before interest and tax (EBIT)
- EBIT values complemented the EBT trends, starting at $1,243 million in 2018 and nearly doubling to $2,348 million in 2019. The following year, EBIT displayed stability with a marginal increase to $2,357 million, indicating a plateau in earnings before interest and tax expenses. In 2021, EBIT increased notably to $3,298 million, signaling a renewed expansion phase and improved operational leverage.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA figures reflected similar patterns to EBIT but on a larger scale due to the exclusion of depreciation and amortization. Starting at $1,597 million in 2018, EBITDA rose sharply to $2,832 million in 2019. The growth rate slowed in 2020 with a slight increase to $2,852 million. In 2021, EBITDA increased further to $3,842 million, demonstrating robust earnings before non-cash charges and reinforcing the trend of improving overall profitability.
Enterprise Value to EBITDA Ratio, Current
Keurig Dr Pepper Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | |
| Mondelēz International Inc. | |
| PepsiCo Inc. | |
| Philip Morris International Inc. | |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | |
| EV/EBITDA, Industry | |
| Consumer Staples | |
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
Keurig Dr Pepper Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Enterprise value (EV)1 | |||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||
| Valuation Ratio | |||||
| EV/EBITDA3 | |||||
| Benchmarks | |||||
| EV/EBITDA, Competitors4 | |||||
| Coca-Cola Co. | |||||
| Mondelēz International Inc. | |||||
| PepsiCo Inc. | |||||
| Philip Morris International Inc. | |||||
| EV/EBITDA, Sector | |||||
| Food, Beverage & Tobacco | |||||
| EV/EBITDA, Industry | |||||
| Consumer Staples | |||||
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).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a consistent upward trajectory over the four-year period. Starting from 51,224 million US dollars at the end of 2018, it increased steadily each year, reaching 63,990 million US dollars by the end of 2021. This signifies a growth in the market valuation or acquisition cost of the company during the observed timeframe.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA exhibits a significant improvement across the reported years. It nearly doubled from 1,597 million US dollars at the end of 2018 to 2,832 million in 2019, then maintained a relatively stable level in 2020 with a slight increase to 2,852 million. In 2021, EBITDA saw a notable increase to 3,842 million US dollars, indicating enhanced operational profitability and cash flow generation capability.
- EV/EBITDA Ratio
- The EV/EBITDA ratio shows a declining trend over the period. It started at a relatively high multiple of 32.08 in 2018, dropped substantially to 19.2 in 2019, and then slightly increased to 19.99 in 2020 before decreasing again to 16.66 in 2021. This downward movement suggests an improvement in valuation relative to earnings, potentially indicating either a rising EBITDA outpacing the growth of enterprise value or a market reassessment leading to a more favorable valuation metric.