Enterprise Value to EBITDA (EV/EBITDA)
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Linde plc pages available for free this week:
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Linde plc, EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income
- There is a consistent upward trend in net income from 2020 to 2024, increasing from $2,501 million in 2020 to $6,565 million in 2024. The growth appears to be steady each year, with the most significant increase occurring between 2022 and 2023.
- Earnings Before Tax (EBT)
- EBT shows a similar positive trajectory, rising from $3,469 million in 2020 to $8,739 million in 2024. The increments are substantial, especially from 2022 onward, indicating improved profitability before tax obligations over the period.
- Earnings Before Interest and Tax (EBIT)
- EBIT also demonstrates continuous growth, moving from $3,639 million in 2020 up to $9,223 million in 2024. The progression closely mirrors EBT, reflecting strong operational performance and efficient cost management.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA has increased steadily from $8,265 million in 2020 to $13,003 million in 2024. This upward trend suggests enhanced cash flow generation capabilities and solid earnings quality throughout the given years.
Enterprise Value to EBITDA Ratio, Current
Linde plc, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Sherwin-Williams Co. | |
| EV/EBITDA, Sector | |
| Chemicals | |
| EV/EBITDA, Industry | |
| Materials | |
Based on: 10-K (reporting date: 2024-12-31).
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
Linde plc, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Sherwin-Williams Co. | ||||||
| EV/EBITDA, Sector | ||||||
| Chemicals | ||||||
| EV/EBITDA, Industry | ||||||
| Materials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trend
- The enterprise value of the company shows a consistent upward trajectory over the five-year period. Starting at US$146,303 million in 2020, it increased steadily each year, reaching US$236,632 million by 2024. This represents a significant overall growth of approximately 61.8%, indicating increasing market valuation or perceived future growth potential.
- EBITDA Trend
- The earnings before interest, tax, depreciation, and amortization (EBITDA) also display a positive growth pattern. From US$8,265 million in 2020, the EBITDA rose consistently each year to US$13,003 million in 2024. This reflects a total increase of about 57.3%, suggesting improving operational performance and cash generation capacity over the period.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio fluctuates within a narrow range across the years. It started at 17.7 in 2020, dropped to 16.23 in 2021, before increasing to a peak of 18.88 in 2023 and slightly decreasing to 18.2 in 2024. These variations indicate relative valuation shifts, with the market at times valuing the company more expensively relative to its earnings, particularly noticeable in 2023, before stabilizing somewhat in 2024.
- Overall Insights
- The company shows strong growth in both enterprise value and EBITDA, reflecting expansion and improved profitability. The EV/EBITDA ratio exhibits moderate volatility, suggesting changing investor sentiment or market conditions impacting valuation but generally remaining within a consistent range indicative of stable performance expectations. The alignment of increasing EBITDA with rising EV supports a scenario of sustained operational and market value growth.