Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
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. | Coca-Cola Co. EBITDA increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 266,559) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 13,828) |
Valuation Ratio | |
EV/EBITDA | 19.28 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
PepsiCo Inc. | 18.15 |
EV/EBITDA, Sector | |
Food, Beverage & Tobacco | 18.70 |
EV/EBITDA, Industry | |
Consumer Staples | 15.80 |
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
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 287,975) | 302,010) | 250,062) | 285,330) | 225,735) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 13,828) | 15,474) | 12,722) | 13,097) | 10,355) | |
Valuation Ratio | ||||||
EV/EBITDA3 | 20.83 | 19.52 | 19.66 | 21.79 | 21.80 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
PepsiCo Inc. | 18.63 | 18.42 | 17.17 | 17.85 | 14.05 | |
EV/EBITDA, Sector | ||||||
Food, Beverage & Tobacco | 19.70 | 18.98 | 18.40 | 19.84 | 17.47 | |
EV/EBITDA, Industry | ||||||
Consumer Staples | 16.61 | 16.29 | 15.70 | 18.38 | 13.52 |
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
= 287,975 ÷ 13,828 = 20.83
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. | Coca-Cola Co. EV/EBITDA ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level. |