Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Boeing Co., 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).
The financial data reveals several notable trends over the five-year period ending in 2024. The company consistently recorded substantial net losses attributable to shareholders, with fluctuations in the magnitude of these losses. The net loss peaked in 2020, decreased significantly in 2021, and then experienced a moderate increase in 2022. A further reduction was observed in 2023, followed by a sharp rise in net loss in 2024, approaching the high levels seen at the start of the period.
Earnings before tax (EBT) show a similar pattern to net loss, reflecting the ongoing profitability challenges. The largest negative EBT value occurred in 2020. This loss diminished notably by 2021 and remained relatively stable but still negative in 2022 and 2023, before escalating sharply again in 2024. This indicates a return to higher pre-tax losses after a period of relative stabilization.
Regarding earnings before interest and tax (EBIT), the data indicates an improvement in operating performance from 2020 through 2023. Initially, EBIT was deeply negative in 2020 and 2021, but the losses narrowed significantly by 2022 and even reversed to a positive value in 2023. However, in 2024 there was a pronounced decline in EBIT, returning to substantial losses. This suggests some recovery in operating results before a notable downturn in the latest year.
The trend in earnings before interest, tax, depreciation, and amortization (EBITDA) follows a comparable course. EBITDA was strongly negative in 2020, improved dramatically by 2021 and 2022, turning positive in 2023, which indicates enhanced operational cash flow generation. Nevertheless, this positive momentum was reversed in 2024, with EBITDA declining sharply into negative territory once again.
- Summary of Trends
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Overall, the data reflects a cyclical pattern of significant financial distress with intermittent improvements in operating profitability and cash flow. While losses narrowed substantially and operational earnings turned positive during 2022 and 2023, the situation deteriorated again in 2024.
This volatility may point to external or internal challenges affecting revenue generation and cost management, with sporadic periods of recovery interrupted by renewed financial pressure.
Continuous negative net losses and earnings before tax highlight ongoing difficulties in achieving sustained profitability. The temporary operating earnings and EBITDA gains suggest potential operational adjustments or transient favorable conditions that were not maintained into the final period.
Enterprise Value to EBITDA Ratio, Current
Boeing Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 190,387) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | (7,649) |
| Valuation Ratio | |
| EV/EBITDA | — |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Caterpillar Inc. | 13.61 |
| Eaton Corp. plc | 26.50 |
| GE Aerospace | 27.39 |
| Honeywell International Inc. | 18.24 |
| Lockheed Martin Corp. | 14.31 |
| RTX Corp. | 18.53 |
| EV/EBITDA, Sector | |
| Capital Goods | 24.82 |
| EV/EBITDA, Industry | |
| Industrials | 18.73 |
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
Boeing Co., 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 | 159,498) | 165,110) | 166,146) | 158,751) | 152,408) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | (7,649) | 2,315) | (510) | (207) | (10,074) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | — | 71.32 | — | — | — | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Caterpillar Inc. | 12.46 | 12.16 | 13.86 | 12.43 | 19.87 | |
| Eaton Corp. plc | 21.53 | 24.91 | 19.18 | 17.06 | 22.11 | |
| GE Aerospace | 22.88 | 11.06 | 14.82 | 95.57 | 9.35 | |
| Honeywell International Inc. | 15.87 | 15.55 | 18.01 | 15.57 | 20.21 | |
| Lockheed Martin Corp. | 14.23 | 11.71 | 14.98 | 11.97 | 9.97 | |
| RTX Corp. | 16.80 | 16.62 | 14.92 | 15.48 | 41.71 | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 21.78 | 16.03 | 19.01 | 19.87 | 25.02 | |
| 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
= 159,498 ÷ -7,649 = —
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a generally increasing trend from 2020 to 2022, rising from 152,408 million USD in 2020 to 166,146 million USD in 2022. However, it slightly decreased in 2023 to 165,110 million USD and further declined in 2024 to 159,498 million USD. Despite the recent decreases, the overall EV remains elevated compared to the 2020 baseline.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA exhibits significant volatility over the observed years. In 2020, EBITDA was deeply negative at -10,074 million USD, indicating substantial operational challenges. It improved sharply in 2021 and 2022, approaching near breakeven and positive territory, with values of -207 million USD and -510 million USD respectively. In 2023, EBITDA turned positive at 2,315 million USD, showing a period of operational recovery. However, this improvement was not sustained, as EBITDA reverted to a negative figure of -7,649 million USD in 2024, signaling renewed operational difficulties or increased expenses.
- EV/EBITDA Ratio
- The EV/EBITDA ratio is only available for 2023, where it reached a notably high value of 71.32. This elevated ratio suggests that the enterprise value was very high relative to EBITDA, which could imply market expectations of future growth, or reflect the transient nature of earnings during that period. The absence of the ratio for other years, likely due to negative or near-zero EBITDA values, limits the ability to analyze trend changes through this metric over time.