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: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| 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. EBITDA increased from 2019 to 2020 and from 2020 to 2021. |
Enterprise Value to EBITDA Ratio, Current
Danaher Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 228,219 |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 10,004 |
| Valuation Ratio | |
| EV/EBITDA | 22.81 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 15.39 |
| Bristol-Myers Squibb Co. | 8.96 |
| Cigna Corp. | 10.67 |
| CVS Health Corp. | 10.08 |
| Elevance Health Inc. | 10.47 |
| Humana Inc. | 13.49 |
| Intuitive Surgical Inc. | 30.79 |
| Medtronic PLC | 14.44 |
| UnitedHealth Group Inc. | 18.98 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 14.46 |
| EV/EBITDA, Industry | |
| Health Care | 13.78 |
Based on: 10-K (reporting date: 2021-12-31).
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, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 210,569 | 174,606 | 116,135 | 87,877 | 77,810 | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 10,004 | 6,545 | 4,603 | 4,758 | 4,340 | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 21.05 | 26.68 | 25.23 | 18.47 | 17.93 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 17.42 | 25.99 | 21.70 | 21.41 | 20.08 | |
| Bristol-Myers Squibb Co. | 8.65 | 34.35 | 23.84 | 11.97 | 17.25 | |
| Cigna Corp. | 9.06 | 6.31 | 8.42 | 21.51 | 10.85 | |
| CVS Health Corp. | 10.41 | 8.56 | 9.43 | 21.09 | 8.13 | |
| Elevance Health Inc. | 10.05 | 7.57 | 9.05 | 11.15 | 9.78 | |
| Humana Inc. | 11.22 | 6.91 | 9.30 | 12.59 | 6.00 | |
| Intuitive Surgical Inc. | 44.54 | 59.12 | 37.53 | 40.47 | 37.53 | |
| Medtronic PLC | 24.41 | 17.92 | 16.01 | 13.94 | 16.32 | |
| UnitedHealth Group Inc. | 17.39 | 13.39 | 13.82 | 13.89 | 13.43 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 14.60 | 14.70 | 14.41 | 16.18 | 13.54 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 13.50 | 16.44 | 14.25 | 15.56 | 14.19 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 210,569 ÷ 10,004 = 21.05
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. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |