Enterprise Value to EBITDA (EV/EBITDA)
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- Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2015
- Total Asset Turnover since 2015
- Price to Operating Profit (P/OP) since 2015
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Kraft Heinz Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Net Income (Loss) Trend
- The net income attributable shows significant volatility over the five-year period. Starting at $634 million in 2015, it experiences a substantial increase to $3,632 million in 2016 and peaks at $10,999 million in 2017. However, there is a sharp reversal in 2018, with a substantial loss of $10,192 million, before recovering to a positive $1,935 million in 2019. This volatility indicates considerable fluctuations in profitability, including one year with a large net loss.
- Earnings Before Tax (EBT) Trend
- EBT exhibits a pattern similar to net income, with growth from $1,013 million in 2015 to over $5,000 million in both 2016 and 2017. In 2018, EBT falls to a negative $11,321 million, reflecting a significant operational or non-operational issue. It shows recovery in 2019, rising again to $2,661 million. The fluctuations denote instability in earnings performance before tax expenses.
- Earnings Before Interest and Tax (EBIT) Trend
- EBIT follows the overall trajectory seen in net income and EBT. It increases steadily from $2,334 million in 2015 to $6,764 million in 2017. Then, a major decline occurs in 2018, resulting in a negative EBIT of $10,037 million, indicating operational challenges or write-downs. In 2019, there is a partial recovery to $4,022 million, though EBIT remains below the 2017 peak.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) Trend
- EBITDA values indicate overall earnings capacity excluding non-cash charges. The pattern mirrors other earnings metrics with an increase from $3,074 million in 2015 to $7,800 million in 2017. In 2018, EBITDA turns negative at $9,054 million, reflecting severe operational setbacks. It recovers to $5,016 million in 2019, yet does not return to prior peak levels seen in 2017.
- Overall Observations
- The data reveals a strong growth phase from 2015 to 2017, with rising earnings across all measures. However, 2018 represents a significant downturn across all profitability metrics, marked by substantial losses and negative earnings. The partial rebound in 2019 suggests some recovery but earnings remain below the highest points observed in 2017. These trends indicate considerable volatility, likely due to significant one-time charges, impairments, or operational challenges in 2018.
Enterprise Value to EBITDA Ratio, Current
Kraft Heinz Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ 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. | |
Based on: 10-K (reporting date: 2019-12-28).
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 Heinz Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 28, 2019 | Dec 29, 2018 | Dec 30, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
Based on: 10-K (reporting date: 2019-12-28), 10-K (reporting date: 2018-12-29), 10-K (reporting date: 2017-12-30), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced significant fluctuations over the five-year period. It increased from 114,624 million USD at the end of 2015 to a peak of 141,537 million USD at the end of 2016. Subsequently, there was a decline to 116,405 million USD in 2017, followed by a sharp drop to 65,217 million USD in 2018. The downward trend continued moderately into 2019, with the value decreasing to 59,922 million USD. Overall, the EV showed a notable volatility with a pronounced decrease in the later years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figure revealed substantial variability and certain instability throughout the time frame. It rose markedly from 3,074 million USD in 2015 to 7,494 million USD in 2016, then showed a slight increase to 7,800 million USD in 2017. However, in 2018, EBITDA exhibited a considerable negative shift, recording a loss of 9,054 million USD. In 2019, there was a recovery with EBITDA returning to a positive figure of 5,016 million USD. These sharp swings indicate possible operational or one-time impacts affecting earnings substantially during 2018.
- EV/EBITDA Ratio
- The EV to EBITDA ratio demonstrated a declining trend when data was available, suggesting a movement toward a more attractive valuation multiple over time. It started at a high level of 37.29 times in 2015, dropped to 18.89 in 2016, and further to 14.92 in 2017. The ratio data for 2018 is missing, likely due to the negative EBITDA figure making the ratio invalid or less meaningful. In 2019, the ratio resumed at a lower level of 11.95 times, indicating an improved valuation relative to earnings despite the EBITDA recovery from negative levels.