Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
CVS Health Corp., 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 exhibits fluctuating trends in profitability and earnings metrics over the observed five-year period.
- Net Income Attributable to CVS Health
- The net income demonstrates variability with an initial increase from approximately 7,179 million USD in 2020 to 7,910 million USD in 2021, followed by a significant decline to 4,149 million USD in 2022. A strong recovery occurs in 2023, reaching 8,344 million USD, before falling again to 4,614 million USD in 2024. This pattern indicates volatility in net profitability across the years.
- Earnings Before Tax (EBT)
- EBT follows a similar cyclical trend, increasing from 9,770 million USD in 2020 to 10,420 million USD in 2021, then declining sharply to 5,628 million USD in 2022. It rebounds to 11,173 million USD in 2023 and decreases to 6,148 million USD in 2024. The fluctuations in EBT mirror the net income trends, suggesting consistent variability in pre-tax profitability.
- Earnings Before Interest and Tax (EBIT)
- EBIT shows a more moderate pattern, beginning at 12,677 million USD in 2020, slightly increasing to 12,923 million USD in 2021, then falling substantially to 7,915 million USD in 2022. It again rises to a peak of 13,831 million USD in 2023 before dropping to 9,106 million USD in 2024. This indicates some operational earnings instability, though with a less pronounced range compared to net income and EBT.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA trends align with other earnings metrics, increasing modestly from 17,118 million USD in 2020 to 17,435 million USD in 2021, then reducing considerably to 12,162 million USD in 2022. It peaks at 18,197 million USD in 2023 before declining again to 13,703 million USD in 2024. This suggests volatility in core earnings capacity before non-cash expenses.
Overall, the data reflects a recurring pattern of earnings growth followed by notable decreases, typically with peaks in 2021 and 2023 and troughs in 2022 and 2024 across all earnings measures. This cyclicality could be driven by external economic factors, operational challenges, or one-time events impacting profitability unevenly across years. The relatively synchronized movement across net income, EBT, EBIT, and EBITDA indicates consistent influences affecting all levels of earnings performance.
Enterprise Value to EBITDA Ratio, Current
CVS Health Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | |
| EV/EBITDA, Industry | |
| Health Care | |
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
CVS Health Corp., 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 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value displayed fluctuations over the analyzed period. It increased from 146,595 million USD in 2020 to a peak of 181,495 million USD in 2021. However, it subsequently declined each year, falling to 151,066 million USD in 2022, 146,035 million USD in 2023, and further to 135,154 million USD in 2024. This indicates a downward trend in overall valuation following the peak in 2021.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA experienced volatility during the period. The value initially increased slightly from 17,118 million USD in 2020 to 17,435 million USD in 2021, then sharply declined to 12,162 million USD in 2022. It recovered strongly to 18,197 million USD in 2023 before dropping again to 13,703 million USD in 2024. The pattern shows significant fluctuations, suggesting varying operational performance or possible one-time impacts.
- EV/EBITDA Ratio
- This valuation metric risen from 8.56 in 2020 to a high of 12.42 in 2022, indicative of higher enterprise value relative to earnings during that year, possibly reflecting market expectations or decreased EBITDA. The ratio subsequently decreased to 8.03 in 2023 before increasing again to 9.86 in 2024. The ratio's variability aligns with the changes in both EV and EBITDA, highlighting a degree of valuation and earnings inconsistency over time.