Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Danaher Corp. (NYSE:DHR)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Danaher Corp., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net earnings 3,646  3,008  2,651  2,492  2,554 
Less: Earnings from discontinued operations, net of income taxes —  576  —  22  400 
Add: Income tax expense 849  873  642  469  458 
Earnings before tax (EBT) 4,495  3,305  3,293  2,939  2,611 
Add: Interest expense 275  109  157  163  184 
Earnings before interest and tax (EBIT) 4,770  3,414  3,450  3,102  2,796 
Add: Depreciation 637  564  602  578  545 
Add: Amortization of intangible assets 1,138  625  706  661  583 
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,545  4,603  4,758  4,340  3,924 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

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. Danaher Corp.’s EBITDA decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Enterprise Value to EBITDA Ratio, Current

Danaher Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 201,739 
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,545 
Valuation Ratio
EV/EBITDA 30.82
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 23.51
Becton, Dickinson & Co. 23.17
Boston Scientific Corp. 48.78
Bristol-Myers Squibb Co. 37.19
CVS Health Corp. 9.50
Edwards Lifesciences Corp. 59.44
Intuitive Surgical Inc. 66.74
Medtronic PLC 23.06
Stryker Corp. 34.73
UnitedHealth Group Inc. 15.57
EV/EBITDA, Sector
Health Care Equipment & Services 21.56
EV/EBITDA, Industry
Health Care 20.33

Based on: 10-K (filing date: 2021-02-25).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 174,606  116,135  87,877  77,810  70,169 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 6,545  4,603  4,758  4,340  3,924 
Valuation Ratio
EV/EBITDA3 26.68 25.23 18.47 17.93 17.88
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories 25.99 21.70 21.41 20.08 25.22
Becton, Dickinson & Co. 22.08 21.93 22.08 21.58 17.76
Boston Scientific Corp. 44.36 30.18 24.31 21.10 31.56
Bristol-Myers Squibb Co. 34.35 23.84 11.97 17.25 14.26
CVS Health Corp. 8.56 9.43 21.09 8.13 8.48
Edwards Lifesciences Corp. 51.87 37.05 42.10 24.39 22.48
Intuitive Surgical Inc. 59.12 37.53 40.47 37.53 23.10
Medtronic PLC 17.92 16.01 13.94 16.32 15.92
Stryker Corp. 33.52 24.38 21.99 20.29 18.37
UnitedHealth Group Inc. 13.55 13.96 14.04 13.61 11.48
EV/EBITDA, Sector
Health Care Equipment & Services 19.59 17.73 17.80 15.72 14.41
EV/EBITDA, Industry
Health Care 19.03 15.72 15.85 14.53 13.40

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-22).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 174,606 ÷ 6,545 = 26.68

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. Danaher Corp.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.