Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Carrier Global Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income attributable to common shareowners
- The net income shows a decrease from 1982 million USD in 2020 to 1664 million USD in 2021, followed by a strong rebound to 3534 million USD in 2022. This reflects a considerable improvement in profitability in the latest year, exceeding the 2020 figure significantly.
- Earnings before Tax (EBT)
- EBT follows a similar pattern with a decline from 2855 million USD in 2020 to 2400 million USD in 2021, then a substantial increase to 4292 million USD in 2022. The 2022 value significantly surpasses previous years, indicating improved operational efficiency and/or revenue growth before tax impacts.
- Earnings before Interest and Tax (EBIT)
- EBIT decreased from 3153 million USD in 2020 to 2719 million USD in 2021, then rose markedly to 4594 million USD in 2022. The 2022 figure not only recovers prior losses but shows strong operational profitability enhancements.
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA experienced a decline from 3489 million USD in 2020 to 3057 million USD in 2021, followed by a substantial increase to 4974 million USD in 2022. This indicates improved cash-generating ability and operational performance in 2022 compared to the previous two years.
Enterprise Value to EBITDA Ratio, Current
Carrier Global Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 39,576) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,974) |
| Valuation Ratio | |
| EV/EBITDA | 7.96 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 14.52 |
| Eaton Corp. plc | 27.83 |
| GE Aerospace | 29.68 |
| Honeywell International Inc. | 16.54 |
| Lockheed Martin Corp. | 13.17 |
| RTX Corp. | 19.74 |
| EV/EBITDA, Sector | |
| Capital Goods | 27.96 |
| EV/EBITDA, Industry | |
| Industrials | 21.97 |
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
Carrier Global Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||
| Enterprise value (EV)1 | 42,670) | 46,441) | 39,816) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,974) | 3,057) | 3,489) | |
| Valuation Ratio | ||||
| EV/EBITDA3 | 8.58 | 15.19 | 11.41 | |
| Benchmarks | ||||
| EV/EBITDA, Competitors4 | ||||
| Boeing Co. | — | — | — | |
| Caterpillar Inc. | 13.86 | 12.43 | 19.87 | |
| Eaton Corp. plc | 19.18 | 17.06 | 22.11 | |
| GE Aerospace | 14.82 | 95.57 | 9.35 | |
| Honeywell International Inc. | 18.01 | 15.57 | 20.21 | |
| Lockheed Martin Corp. | 14.98 | 11.97 | 9.97 | |
| RTX Corp. | 14.92 | 15.48 | 41.71 | |
| EV/EBITDA, Sector | ||||
| Capital Goods | 19.01 | 19.87 | 25.02 | |
| EV/EBITDA, Industry | ||||
| Industrials | 16.44 | 16.30 | 30.80 | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 42,670 ÷ 4,974 = 8.58
4 Click competitor name to see calculations.
- Enterprise value (EV)
- The enterprise value demonstrates fluctuation over the three-year period. From 2020 to 2021, there was an increase from 39,816 million USD to 46,441 million USD, indicating a growth phase. However, in 2022, the enterprise value declined to 42,670 million USD, suggesting a partial reversal of the previous year's increase.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA experienced a decline from 3,489 million USD in 2020 to 3,057 million USD in 2021, reflecting a reduction in operating profitability or cash generation during that year. Notably, there was a significant increase in 2022, with EBITDA rising substantially to 4,974 million USD, surpassing the 2020 level by a considerable margin.
- EV/EBITDA ratio
- The EV/EBITDA ratio increased from 11.41 in 2020 to 15.19 in 2021, despite the decline in EBITDA, mainly driven by the rise in enterprise value. This indicates a higher valuation multiple relative to earnings before interest, tax, depreciation, and amortization, potentially signifying expectations of future growth or lower perceived risk. In 2022, the ratio decreased markedly to 8.58 due to the substantial growth in EBITDA combined with the reduction in enterprise value, reflecting a more conservative valuation and improved earnings capacity relative to enterprise value.