Microsoft Excel LibreOffice Calc

Becton, Dickinson & Co. (BDX)

Enterprise Value to EBITDA (EV/EBITDA)

Difficulty: Intermediate

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Becton, Dickinson & Co., EBITDA calculation

US$ in millions

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12 months ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014 Sep 30, 2013
Net income 311  1,100  976  695  1,185  1,293 
Less: Income from discontinued operations, net of income tax provision —  —  —  —  —  364 
Add: Income tax expense 862  (124) 98  44  337  236 
Earnings before tax (EBT) 1,173  976  1,074  739  1,522  1,165 
Add: Interest expense 706  521  388  371  135  138 
Earnings before interest and tax (EBIT) 1,879  1,497  1,462  1,110  1,657  1,303 
Add: Depreciation and amortization 1,978  1,088  1,114  891  562  546 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,857  2,585  2,576  2,001  2,219  1,849 

Based on: 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25), 10-K (filing date: 2014-11-26), 10-K (filing date: 2013-11-27).

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. Becton, Dickinson & Co.’s EBITDA increased from 2016 to 2017 and from 2017 to 2018.

Enterprise Value to EBITDA Ratio, Current

Becton, Dickinson & Co., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 88,505 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,857 
Valuation Ratio
EV/EBITDA 22.95
Benchmarks
EV/EBITDA, Competitors1
Intuitive Surgical Inc. 40.40
Medtronic PLC 17.20
Stryker Corp. 25.77
Thermo Fisher Scientific Inc. 21.06
UnitedHealth Group Inc. 11.90
EV/EBITDA, Sector
Health Care Equipment & Services 17.17
EV/EBITDA, Industry
Health Care 14.59

Based on: 10-K (filing date: 2018-11-21).

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

Becton, Dickinson & Co., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015 Sep 30, 2014 Sep 30, 2013
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 85,173  55,792  45,755  43,014  28,345  22,507 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,857  2,585  2,576  2,001  2,219  1,849 
Valuation Ratio
EV/EBITDA3 22.08 21.58 17.76 21.50 12.77 12.17
Benchmarks
EV/EBITDA, Competitors4
Intuitive Surgical Inc. 40.47 37.53 23.10 21.93 28.10 —
Medtronic PLC 13.94 16.32 15.92 22.94 12.42 —
Stryker Corp. 21.99 20.29 18.37 15.99 20.80 —
Thermo Fisher Scientific Inc. 19.41 20.47 18.21 15.80 15.25 —
UnitedHealth Group Inc. 14.04 13.61 11.48 9.81 9.54 —
EV/EBITDA, Sector
Health Care Equipment & Services 16.93 16.96 14.81 15.06 12.52 —
EV/EBITDA, Industry
Health Care 15.05 15.15 13.79 13.64 13.34 —

Based on: 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25), 10-K (filing date: 2014-11-26), 10-K (filing date: 2013-11-27).

1 See details »

2 See details »

3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 85,173 ÷ 3,857 = 22.08

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. Becton, Dickinson & Co.’s EV/EBITDA ratio increased from 2016 to 2017 and from 2017 to 2018.