Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Coca-Cola Co., EBITDA calculation
US$ in millions
Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25).
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.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019. |
Enterprise Value to EBITDA Ratio, Current
Coca-Cola Co., current EV/EBITDA calculation, comparison to benchmarks
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 242,174 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 13,097 |
Valuation Ratio | |
EV/EBITDA | 18.49 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
PepsiCo Inc. | 17.29 |
EV/EBITDA, Sector | |
Beverages | 17.90 |
EV/EBITDA, Industry | |
Consumer Goods | 26.96 |
Based on: 10-K (filing date: 2020-02-24).
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
Coca-Cola Co., historical EV/EBITDA calculation, comparison to benchmarks
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 285,330 | 225,735 | 216,786 | 203,047 | 215,714 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 13,097 | 10,355 | 8,843 | 10,656 | 12,431 | |
Valuation Ratio | ||||||
EV/EBITDA3 | 21.79 | 21.80 | 24.51 | 19.05 | 17.35 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
PepsiCo Inc. | 17.85 | 14.05 | 13.65 | 14.13 | 14.91 | |
EV/EBITDA, Sector | ||||||
Beverages | 19.84 | 17.47 | 18.02 | 16.42 | 16.22 | |
EV/EBITDA, Industry | ||||||
Consumer Goods | 18.89 | 13.55 | 14.10 | 12.51 | 13.65 |
Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-25).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 285,330 ÷ 13,097 = 21.79
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.’s EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019. |