Stock Analysis on Net
Stock Analysis on Net
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Becton, Dickinson & Co. (NYSE:BDX)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Net income 874  1,233  311  1,100  976  695 
Add: Income tax expense 111  (57) 862  (124) 98  44 
Earnings before tax (EBT) 985  1,176  1,173  976  1,074  739 
Add: Interest expense 528  639  706  521  388  371 
Earnings before interest and tax (EBIT) 1,513  1,815  1,879  1,497  1,462  1,110 
Add: Depreciation and amortization 2,154  2,253  1,978  1,088  1,114  891 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,667  4,068  3,857  2,585  2,576  2,001 

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 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).

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 2018 to 2019 but then decreased significantly from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 89,757 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,667 
Valuation Ratio
EV/EBITDA 24.48
Benchmarks
EV/EBITDA, Competitors1
Boston Scientific Corp. 28.36
Danaher Corp. 37.27
Edwards Lifesciences Corp. 41.99
Intuitive Surgical Inc. 53.08
Medtronic PLC 22.09
Stryker Corp. 26.92
Thermo Fisher Scientific Inc. 30.23
UnitedHealth Group Inc. 16.15
EV/EBITDA, Sector
Health Care Equipment & Services 23.44
EV/EBITDA, Industry
Health Care 18.99

Based on: 10-K (filing date: 2020-11-25).

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, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016 Sep 30, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 80,969  89,200  85,173  55,792  45,755  43,014 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,667  4,068  3,857  2,585  2,576  2,001 
Valuation Ratio
EV/EBITDA3 22.08 21.93 22.08 21.58 17.76 21.50
Benchmarks
EV/EBITDA, Competitors4
Boston Scientific Corp. 30.18 24.31 21.10 31.56 71.28
Danaher Corp. 25.23 18.47 17.93 17.88 15.88
Edwards Lifesciences Corp. 37.05 42.10 24.39 22.48 25.34
Intuitive Surgical Inc. 37.53 40.47 37.53 23.10 21.93
Medtronic PLC 17.92 16.01 13.94 16.32 15.92 22.94
Stryker Corp. 24.38 21.99 20.29 18.37 15.99
Thermo Fisher Scientific Inc. 19.74 19.41 20.47 18.21 15.80
UnitedHealth Group Inc. 13.96 14.04 13.61 11.48 9.81
EV/EBITDA, Sector
Health Care Equipment & Services 19.06 17.85 17.43 15.78 16.08
EV/EBITDA, Industry
Health Care 16.46 15.84 15.22 13.93 13.15

Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-27), 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).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 80,969 ÷ 3,667 = 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 decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level.