Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Danaher Corp., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
- Net Earnings
- Net earnings experienced significant growth from 2020 to 2022, rising from 3646 million USD in 2020 to a peak of 7209 million USD in 2022. However, this was followed by a notable decline in the subsequent years, dropping to 4764 million USD in 2023 and further decreasing to 3899 million USD in 2024.
- Earnings Before Tax (EBT)
- EBT mirrored the trend observed in net earnings, increasing steadily from 4495 million USD in 2020 to a high of 8292 million USD in 2022. This was followed by a sharp reduction to 5044 million USD in 2023 and a smaller decrease to 4646 million USD in 2024.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed a similar pattern, growing from 4770 million USD in 2020 to 8503 million USD in 2022. The years 2023 and 2024 saw declines to 5330 million USD and 4924 million USD, respectively.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA followed the upward trend until 2022, reaching a peak of 10725 million USD. Afterwards, it declined to 7496 million USD in 2023 and slightly decreased again to 7276 million USD in 2024.
- Summary of Trends
- Across all profitability metrics—net earnings, EBT, EBIT, and EBITDA—there was consistent growth from 2020 through 2022, highlighting a period of strong financial performance. Starting in 2023, a marked downturn occurred, with all measures falling significantly in both 2023 and 2024. Despite the decline, the 2024 figures remained above the 2020 baseline, indicating overall growth over the five-year period but with considerable short-term volatility in the latter years.
Enterprise Value to EBITDA Ratio, Current
Danaher Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 159,358) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,276) |
| Valuation Ratio | |
| EV/EBITDA | 21.90 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AbbVie Inc. | 26.56 |
| Amgen Inc. | 15.61 |
| Bristol-Myers Squibb Co. | 42.40 |
| Eli Lilly & Co. | 50.58 |
| Gilead Sciences Inc. | 35.10 |
| Johnson & Johnson | 15.64 |
| Merck & Co. Inc. | 8.82 |
| Pfizer Inc. | 10.40 |
| Regeneron Pharmaceuticals Inc. | 9.93 |
| Thermo Fisher Scientific Inc. | 16.34 |
| Vertex Pharmaceuticals Inc. | 230.37 |
| EV/EBITDA, Sector | |
| Pharmaceuticals, Biotechnology & Life Sciences | 20.65 |
| EV/EBITDA, Industry | |
| Health Care | 18.71 |
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 162,558) | 197,948) | 197,582) | 210,569) | 174,606) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,276) | 7,496) | 10,725) | 10,004) | 6,545) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 22.34 | 26.41 | 18.42 | 21.05 | 26.68 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AbbVie Inc. | 26.97 | 20.79 | 13.31 | 13.44 | 21.34 | |
| Amgen Inc. | 15.31 | 14.13 | 12.97 | 13.22 | 12.24 | |
| Bristol-Myers Squibb Co. | 48.23 | 6.51 | 9.46 | 8.65 | 34.35 | |
| Eli Lilly & Co. | 55.98 | 85.33 | 37.74 | 29.85 | 23.67 | |
| Gilead Sciences Inc. | 35.86 | 10.41 | 13.89 | 8.57 | 24.90 | |
| Johnson & Johnson | 15.77 | 16.45 | 14.78 | 14.47 | 18.20 | |
| Merck & Co. Inc. | 9.90 | 51.30 | 13.91 | 12.18 | 16.05 | |
| Pfizer Inc. | 10.60 | 22.50 | 6.12 | 8.64 | 15.78 | |
| Regeneron Pharmaceuticals Inc. | 13.55 | 20.16 | 15.27 | 6.68 | 12.70 | |
| Thermo Fisher Scientific Inc. | 19.89 | 21.83 | 20.25 | 20.21 | 18.72 | |
| Vertex Pharmaceuticals Inc. | 231.93 | 21.57 | 14.91 | 18.92 | 14.81 | |
| EV/EBITDA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.07 | 22.59 | 13.58 | 13.16 | 18.90 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 20.34 | 19.28 | 13.93 | 14.07 | 17.33 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 162,558 ÷ 7,276 = 22.34
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited an overall increasing trend from 2020 to 2021, rising from $174,606 million to $210,569 million. However, this was followed by a decline in 2022 to $197,582 million and a slight stabilization in 2023 at $197,948 million. A more pronounced decrease occurred in 2024, with the value dropping significantly to $162,558 million.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA experienced a strong upward trajectory between 2020 and 2022, increasing substantially from $6,545 million to $10,725 million. However, this positive momentum reversed markedly in 2023, with EBITDA falling to $7,496 million and continuing to decline in 2024 to $7,276 million.
- EV/EBITDA Ratio
- The EV/EBITDA ratio decreased from 26.68 in 2020 to 18.42 in 2022, indicating a relative improvement in valuation in relation to earnings over this period. This favorable trend reversed by 2023 when the ratio surged to 26.41, signifying a higher valuation multiple despite the drop in EBITDA. In 2024, the ratio adjusted downward to 22.34, yet remained higher than the 2022 level, reflecting ongoing valuation considerations amid reduced earnings.
- Summary
- The financial data show that the company experienced robust growth in earnings through 2022, accompanied by a rising enterprise value initially, which resulted in a declining EV/EBITDA ratio, suggesting improving operational profitability relative to market valuation. However, beginning in 2023, there was a reversal marked by declines in both enterprise value and EBITDA, leading to increased valuation multiples in 2023 and a partial correction in 2024. The significant reduction in both EV and EBITDA in 2024 highlights potential challenges impacting both market perception and operational earnings, which may warrant closer examination to understand underlying causes.