Enterprise Value to EBITDA (EV/EBITDA)
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Danaher Corp. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Danaher Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of the financial information reveals trends in earnings performance over a five-year period. While initial years demonstrate growth, a subsequent decline is evident across all reported earnings metrics. The rate of decline appears to be moderating in the most recent periods.
- Overall Earnings Trend
- Net earnings increased from US$6,433 million in 2021 to US$7,209 million in 2022, representing a growth of approximately 12.3%. However, net earnings then decreased significantly to US$4,764 million in 2023, and continued to decline to US$3,899 million in 2024 and US$3,614 million in 2025. This indicates a substantial contraction in profitability over the latter part of the observed period.
- EBITDA Performance
- EBITDA followed a similar pattern to net earnings. It rose from US$10,004 million in 2021 to US$10,725 million in 2022, an increase of roughly 7.2%. A decrease was then observed, with EBITDA falling to US$7,496 million in 2023, US$7,276 million in 2024, and US$6,945 million in 2025. The rate of decline in EBITDA slowed between 2023 and 2025.
- Relationship between EBITDA and Other Earnings Metrics
- EBITDA consistently remained higher than both EBIT and EBT throughout the period, as expected, due to the exclusion of depreciation, amortization, interest, and taxes. The difference between EBITDA and EBIT narrowed slightly from US$2,168 million in 2021 to US$2,447 million in 2025, suggesting a potential shift in the composition of earnings or changes in depreciation and amortization expenses.
- EBT and EBIT Trends
- Earnings before tax (EBT) mirrored the overall earnings trend, increasing from US$7,598 million in 2021 to US$8,292 million in 2022, then declining to US$5,044 million in 2023, US$4,646 million in 2024, and US$4,233 million in 2025. Earnings before interest and tax (EBIT) exhibited a similar trajectory, moving from US$7,836 million in 2021 to US$8,503 million in 2022, and subsequently decreasing to US$5,330 million in 2023, US$4,924 million in 2024, and US$4,498 million in 2025. The difference between EBIT and EBT remained relatively stable throughout the period.
In summary, the observed period began with positive earnings growth, but experienced a consistent decline in all reported earnings measures in subsequent years. While the declines are substantial, the rate of decrease appears to be lessening towards the end of the period.
Enterprise Value to EBITDA Ratio, Current
Danaher Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | |
| Amgen Inc. | |
| Bristol-Myers Squibb Co. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| Thermo Fisher Scientific Inc. | |
| Vertex Pharmaceuticals Inc. | |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2025-12-31).
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
Danaher Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuating behavior over the five-year period. Initial values decreased, followed by an increase, and then a stabilization at a relatively high level. Enterprise Value demonstrated an initial decrease, followed by relative stability, and then a further decline in the most recent two years. EBITDA experienced an increase initially, but subsequently decreased over the latter part of the period.
- Enterprise Value to EBITDA Ratio
- The ratio began at 21.05 in 2021, decreasing to 18.42 in 2022. A significant increase was then observed in 2023, reaching 26.41. The ratio moderated slightly to 22.34 in 2024 and remained relatively stable at 23.29 in 2025. This suggests periods of both increased and decreased relative valuation based on earnings.
- Enterprise Value Trend
- Enterprise Value decreased from US$210,569 million in 2021 to US$197,582 million in 2022. It remained relatively consistent at US$197,948 million in 2023 before declining to US$162,558 million in 2024 and further to US$161,736 million in 2025. This indicates a consistent downward trend in overall company valuation in the later years of the observed period.
- EBITDA Trend
- EBITDA increased from US$10,004 million in 2021 to US$10,725 million in 2022. However, a consistent decline was then observed, falling to US$7,496 million in 2023, US$7,276 million in 2024, and US$6,945 million in 2025. This suggests a weakening of underlying operational profitability over the latter part of the period.
- Relationship between EV and EBITDA
- The increase in the EV/EBITDA ratio in 2023, despite a decrease in EBITDA, suggests that the decline in Enterprise Value was proportionally less than the decline in earnings. The subsequent stabilization of the ratio in 2024 and 2025, coupled with continued declines in EBITDA, indicates that Enterprise Value is decreasing at a similar rate to earnings, maintaining a relatively consistent valuation multiple.