Stock Analysis on Net
Stock Analysis on Net
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Colgate-Palmolive Co. (NYSE:CL)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Colgate-Palmolive 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 Colgate-Palmolive Company 2,367  2,400  2,024  2,441  1,384 
Add: Net income attributable to noncontrolling interest 160  158  150  145  164 
Add: Income tax expense 774  906  1,313  1,152  1,215 
Earnings before tax (EBT) 3,301  3,464  3,487  3,738  2,763 
Add: Interest expense 192  193  153  149  133 
Earnings before interest and tax (EBIT) 3,493  3,657  3,640  3,887  2,896 
Add: Depreciation and amortization 519  511  475  443  449 
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,012  4,168  4,115  4,330  3,345 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).

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. Colgate-Palmolive Co.’s EBITDA increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Colgate-Palmolive Co., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 75,045 
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,012 
Valuation Ratio
EV/EBITDA 18.71
Benchmarks
EV/EBITDA, Competitors1
Estée Lauder Cos. Inc. 44.22
Kimberly-Clark Corp. 13.32
Nike Inc. 45.56
EV/EBITDA, Sector
Personal Goods 23.76
EV/EBITDA, Industry
Consumer Goods 21.48

Based on: 10-K (filing date: 2020-02-21).

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

Colgate-Palmolive 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 72,618  63,413  67,686  71,198  65,866 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,012  4,168  4,115  4,330  3,345 
Valuation Ratio
EV/EBITDA3 18.10 15.21 16.45 16.44 19.69
Benchmarks
EV/EBITDA, Competitors4
Estée Lauder Cos. Inc. 23.88 19.19 18.79 16.65 15.16
Kimberly-Clark Corp. 14.43 15.09 11.18 12.16 20.99
Nike Inc. 23.83 23.37 16.66 17.34 18.99
EV/EBITDA, Sector
Personal Goods 20.22 18.71 15.49 15.65 18.96
EV/EBITDA, Industry
Consumer Goods 21.26 15.06 15.85 13.88 14.93

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-18).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 72,618 ÷ 4,012 = 18.10

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. Colgate-Palmolive Co.’s EV/EBITDA ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.