Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Builders FirstSource Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| 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. | Builders FirstSource Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Builders FirstSource Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 17,393,298) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,267,346) |
| Valuation Ratio | |
| EV/EBITDA | 4.08 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 64.75 |
| Caterpillar Inc. | 13.02 |
| Eaton Corp. plc | 28.29 |
| General Electric Co. | 13.03 |
| Honeywell International Inc. | 16.16 |
| Lockheed Martin Corp. | 12.24 |
| RTX Corp. | 18.28 |
| EV/EBITDA, Sector | |
| Capital Goods | 22.49 |
| EV/EBITDA, Industry | |
| Industrials | 19.25 |
Based on: 10-K (reporting date: 2022-12-31).
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
Builders FirstSource Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 14,604,435) | 15,800,413) | 10,132,733) | 4,376,694) | 3,169,662) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,267,346) | 2,934,776) | 660,420) | 492,344) | 466,874) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 3.42 | 5.38 | 15.34 | 8.89 | 6.79 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | — | — | — | 284.02 | — | |
| Caterpillar Inc. | 13.86 | 12.43 | 19.87 | 9.66 | — | |
| Eaton Corp. plc | 19.18 | 17.06 | 22.11 | 12.86 | — | |
| General Electric Co. | 14.82 | 95.57 | 9.35 | 13.66 | — | |
| Honeywell International Inc. | 18.01 | 15.57 | 20.21 | 14.95 | — | |
| Lockheed Martin Corp. | 14.98 | 11.97 | 9.97 | 14.86 | — | |
| RTX Corp. | 14.92 | 15.48 | 41.71 | 12.60 | — | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 19.01 | 19.87 | 25.02 | 16.22 | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 16.43 | 16.28 | 30.77 | 16.43 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 14,604,435 ÷ 4,267,346 = 3.42
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. | Builders FirstSource Inc. EV/EBITDA ratio decreased from 2020 to 2021 and from 2021 to 2022. |