Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Kraft Foods Group Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
| 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. | Kraft Foods Group Inc. EBITDA increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Enterprise Value to EBITDA Ratio, Current
Kraft Foods Group Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 59,575) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,275) |
| Valuation Ratio | |
| EV/EBITDA | 26.19 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| lululemon athletica inc. | 16.18 |
| Nike Inc. | 18.71 |
Based on: 10-K (reporting date: 2014-12-27).
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
Kraft Foods Group Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 27, 2014 | Dec 28, 2013 | Dec 29, 2012 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Enterprise value (EV)1 | 46,470) | 41,145) | 39,370) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,275) | 4,984) | 3,139) | |
| Valuation Ratio | ||||
| EV/EBITDA3 | 20.43 | 8.26 | 12.54 | |
| Benchmarks | ||||
| EV/EBITDA, Competitors4 | ||||
| lululemon athletica inc. | — | — | — | |
| Nike Inc. | — | — | — | |
Based on: 10-K (reporting date: 2014-12-27), 10-K (reporting date: 2013-12-28), 10-K (reporting date: 2012-12-29).
3 2014 Calculation
EV/EBITDA = EV ÷ EBITDA
= 46,470 ÷ 2,275 = 20.43
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. | Kraft Foods Group Inc. EV/EBITDA ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |