Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Baxter International Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| 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. | Baxter International Inc. EBITDA increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
Enterprise Value to EBITDA Ratio, Current
Baxter International Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 25,328) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,333) |
| Valuation Ratio | |
| EV/EBITDA | 19.00 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 18.31 |
| Cigna Group | 12.65 |
| CVS Health Corp. | 7.42 |
| Elevance Health Inc. | 10.89 |
| Humana Inc. | 5.98 |
| Intuitive Surgical Inc. | 53.44 |
| Medtronic PLC | 14.01 |
| Shockwave Medical Inc. | 62.88 |
| UnitedHealth Group Inc. | 13.49 |
Based on: 10-K (reporting date: 2015-12-31).
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
Baxter International Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 20,781) | 43,675) | 44,093) | 38,961) | 34,243) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,333) | 3,611) | 3,527) | 3,714) | 3,571) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 15.59 | 12.10 | 12.50 | 10.49 | 9.59 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Humana Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| Shockwave Medical Inc. | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
3 2015 Calculation
EV/EBITDA = EV ÷ EBITDA
= 20,781 ÷ 1,333 = 15.59
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. | Baxter International Inc. EV/EBITDA ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level. |