Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Old Dominion Freight Line Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 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).
A consistent upward trajectory in profitability is observed from 2018 through 2022. While growth remained gradual during the initial three-year period, a significant acceleration in earnings occurred starting in 2021, resulting in substantial year-over-year increases across all measured financial metrics.
- EBITDA Growth Trend
- Earnings before interest, tax, depreciation and amortization increased from 1,046,059 thousand US$ in 2018 to 2,118,978 thousand US$ in 2022. This represents a total expansion of approximately 102.5% over the five-year period, with the most pronounced growth occurring between 2020 and 2022.
- Operating Profitability Analysis
- Earnings before interest and tax (EBIT) mirrored the EBITDA trend, rising from 815,702 thousand US$ in 2018 to 1,842,912 thousand US$ in 2022. The narrow variance between EBIT and Earnings before tax (EBT) suggests a minimal impact from interest expenses on the overall profitability structure.
- Net Income Acceleration
- Net income demonstrated a strong compounding effect, increasing from 605,668 thousand US$ in 2018 to 1,377,159 thousand US$ in 2022. The growth rate intensified significantly after 2020, with net income more than doubling between 2020 and 2022.
- Depreciation and Amortization Dynamics
- The variance between EBITDA and EBIT, which represents depreciation and amortization, remained relatively stable in proportion to the rapid growth of operating earnings. This indicates that the surge in profitability was driven by operational revenue gains rather than a reduction in capital asset depreciation.
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Enterprise Value to EBITDA Ratio, Current
Old Dominion Freight Line Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 44,348,423) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,118,978) |
| Valuation Ratio | |
| EV/EBITDA | 20.93 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| FedEx Corp. | 7.66 |
| Uber Technologies Inc. | 20.69 |
| Union Pacific Corp. | 15.67 |
| United Airlines Holdings Inc. | 5.87 |
| United Parcel Service Inc. | 9.26 |
| EV/EBITDA, Sector | |
| Transportation | 15.59 |
| EV/EBITDA, Industry | |
| Industrials | 23.34 |
Based on: 10-K (reporting date: 2022-12-31).
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
Old Dominion Freight Line Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 37,494,435) | 31,829,677) | 24,779,831) | 16,081,385) | 12,064,500) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,118,978) | 1,650,049) | 1,165,413) | 1,078,007) | 1,046,059) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 17.69 | 19.29 | 21.26 | 14.92 | 11.53 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| FedEx Corp. | 7.33 | 8.22 | — | — | — | |
| Uber Technologies Inc. | — | 227.40 | — | — | — | |
| Union Pacific Corp. | 12.55 | 15.46 | — | — | — | |
| United Airlines Holdings Inc. | 6.23 | 21.49 | — | — | — | |
| United Parcel Service Inc. | 8.94 | 9.56 | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Transportation | 13.14 | 12.73 | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 16.46 | 16.30 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 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 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 37,494,435 ÷ 2,118,978 = 17.69
4 Click competitor name to see calculations.
The Enterprise Value (EV) demonstrated a consistent and substantial upward trajectory from 2018 through 2022, increasing from approximately $12.06 billion to $37.49 billion. During the same period, Earnings before interest, tax, depreciation and amortization (EBITDA) grew from $1.05 billion to $2.12 billion. While EBITDA growth was steady initially, it accelerated significantly between 2020 and 2022, effectively doubling the 2018 earnings level by the end of the analyzed period.
- EV/EBITDA Ratio Expansion
- A period of rapid valuation expansion occurred between 2018 and 2020, during which the EV/EBITDA ratio rose from 11.53 to a peak of 21.26. This indicates that the increase in the market's valuation of the enterprise far outpaced the growth in operational earnings during these three years.
- Valuation Multiple Contraction
- Following the 2020 peak, a gradual decline in the ratio is observed, with the multiple decreasing to 19.29 in 2021 and further to 17.69 in 2022. This compression suggests that the acceleration in EBITDA growth in the latter years began to catch up with the rising Enterprise Value, leading to a stabilization of the valuation multiple.
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