Stock Analysis on Net
Stock Analysis on Net
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Coca-Cola Co. (NYSE:KO)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Coca-Cola Co., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to shareowners of The Coca-Cola Company 8,920  6,434  1,248  6,527  7,351 
Add: Net income attributable to noncontrolling interest 65  42  35  23  15 
Less: Income (loss) from discontinued operations, net of income taxes —  (251) 101  —  — 
Add: Income tax expense 1,801  1,623  5,560  1,586  2,239 
Earnings before tax (EBT) 10,786  8,350  6,742  8,136  9,605 
Add: Interest expense 946  919  841  733  856 
Earnings before interest and tax (EBIT) 11,732  9,269  7,583  8,869  10,461 
Add: Depreciation and amortization 1,365  1,086  1,260  1,787  1,970 
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,097  10,355  8,843  10,656  12,431 

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 242,979 
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,097 
Valuation Ratio
EV/EBITDA 18.55
Benchmarks
EV/EBITDA, Competitors1
PepsiCo Inc. 16.41
EV/EBITDA, Sector
Beverages 17.49
EV/EBITDA, Industry
Consumer Goods 21.30

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

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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 20.67 17.66 15.78 14.24 15.72

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).

1 See details »

2 See details »

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.