Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
CVS Health Corp., EBITDA calculation
US$ in millions
|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.||CVS Health Corp.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.|
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)||146,424|
|Earnings before interest, tax, depreciation and amortization (EBITDA)||17,118|
Based on: 10-K (filing date: 2021-02-16).
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
3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 146,595 ÷ 17,118 = 8.56
|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.||CVS Health Corp.’s EV/EBITDA ratio decreased from 2018 to 2019 and from 2019 to 2020.|