Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
United Airlines Holdings Inc., 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 (Loss)
- The net income exhibited a significant improvement over the analyzed period. Starting with a substantial loss of -7069 million US dollars in 2020, the figure improved to a loss of -1964 million in 2021. From 2022 onwards, the company reported positive net income, increasing to 737 million in 2022, then further rising to 2618 million in 2023, and reaching 3149 million in 2024. This demonstrates a strong recovery and positive profitability trend after initial large losses.
- Earnings Before Tax (EBT)
- EBT mirrored the net income trend, presenting a marked improvement. The company reported a loss of -8822 million US dollars in 2020, which narrowed to -2557 million in 2021. From 2022, earnings before tax turned positive at 990 million, then grew substantially to 3387 million in 2023, and further increased to 4168 million in 2024. This indicates better operational efficiency and profitability before tax obligations in recent years.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values followed a similar pattern of recovery and growth. It started with a noteworthy negative figure of -7830 million US dollars in 2020, improved to a smaller loss of -980 million in 2021, and then transitioned to positive EBIT from 2022 onward. The values climbed steadily to 2663 million in 2022, 5161 million in 2023, and 5570 million in 2024. This progression suggests strengthening core operational profitability excluding interest and tax expenses.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed the most pronounced recovery trend. In 2020, the company reported a negative EBITDA of -5342 million US dollars. However, it turned positive in 2021 with 1505 million, and demonstrated robust growth in the following years — reaching 5119 million in 2022, 7832 million in 2023, and 8498 million in 2024. The steady increase in EBITDA underscores enhanced operational performance and suggests improved cash flow generation capacity before non-cash charges and financing costs.
- Overall Trends and Insights
- The financial indicators collectively point to a dramatic turnaround in the company’s financial health over the five-year period. From large losses in 2020, there is a clear positive trajectory in profitability and earnings metrics. Each successive year exhibits stronger earnings, with consistent growth in EBITDA highlighting improving operational efficiency and cash flow. The data suggests that the company has navigated through adverse conditions and has entered a phase of recovery and growth with solid underlying financial performance.
Enterprise Value to EBITDA Ratio, Current
United Airlines Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 48,684) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 8,498) |
| Valuation Ratio | |
| EV/EBITDA | 5.73 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| FedEx Corp. | 6.60 |
| Uber Technologies Inc. | 37.98 |
| Union Pacific Corp. | 12.65 |
| United Parcel Service Inc. | 7.26 |
| EV/EBITDA, Sector | |
| Transportation | 11.48 |
| EV/EBITDA, Industry | |
| Industrials | 18.97 |
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
United Airlines Holdings Inc., 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 | 44,352) | 32,194) | 31,890) | 32,346) | 33,606) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 8,498) | 7,832) | 5,119) | 1,505) | (5,342) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 5.22 | 4.11 | 6.23 | 21.49 | — | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| FedEx Corp. | 8.12 | 7.59 | 7.33 | 8.22 | 10.09 | |
| Uber Technologies Inc. | 31.61 | 45.37 | — | 227.40 | — | |
| Union Pacific Corp. | 14.16 | 15.44 | 12.56 | 15.46 | 15.65 | |
| United Parcel Service Inc. | 9.53 | 11.23 | 8.83 | 9.55 | 30.22 | |
| EV/EBITDA, Sector | ||||||
| Transportation | 12.05 | 13.12 | 13.09 | 12.72 | 50.43 | |
| EV/EBITDA, Industry | ||||||
| Industrials | 17.18 | 14.82 | 16.44 | 16.30 | 30.80 | |
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
= 44,352 ÷ 8,498 = 5.22
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a decreasing trend from 2020 through 2022, declining from approximately $33.6 billion to around $31.9 billion. In 2023, the value slightly increased to about $32.2 billion, followed by a significant rise in 2024, reaching approximately $44.4 billion. This substantial increase in the latest year indicates a markedly higher valuation or market capitalization, potentially reflecting improved market perceptions or asset revaluations.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated a notable turnaround throughout the period. The company recorded a significant negative EBITDA of approximately -$5.3 billion in 2020, which reversed to positive $1.5 billion in 2021. This improvement continued, with EBITDA rising substantially to $5.1 billion in 2022 and further increasing to $7.8 billion in 2023. In 2024, EBITDA growth moderated but still improved slightly, reaching around $8.5 billion. The consistent positive trajectory reflects enhanced operational performance and profitability.
- EV/EBITDA Ratio
- The EV/EBITDA ratio was not available in 2020 due to negative EBITDA. For the subsequent years, the ratio showed a steep decline from 21.49 in 2021 to 6.23 in 2022, and further down to 4.11 in 2023, indicating a decreasing valuation multiple relative to EBITDA and potentially greater operational efficiency or improved earnings quality. However, in 2024, the ratio experienced a moderate increase to 5.22, suggesting a relative increase in valuation compared to EBITDA, which may reflect market optimism or expectations of future earnings growth.