Enterprise Value to EBITDA (EV/EBITDA)
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- Income Statement
- Statement of Comprehensive Income
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Elevance Health Inc., 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).
The financial data reveals several key trends in the company's profitability metrics over the five-year span from 2020 to 2024. Each metric shows fluctuations and general tendencies that provide insight into operational performance and financial health.
- Shareholders’ Net Income
- This metric demonstrates an upward trend from 2020 to 2021, increasing significantly from 4,572 million USD to 6,104 million USD. However, from 2021 onwards, net income exhibits a modest decline and then stagnation, falling slightly to 6,025 million USD in 2022 and maintaining nearly the same level around 5,987 million USD in 2023 and 5,980 million USD in 2024. The initial growth followed by stabilization suggests some headwinds affecting net profitability or possibly increased expenses or tax effects dampening net returns despite underlying operational strength.
- Earnings Before Tax (EBT)
- EBT shows a considerable increase from 6,238 million USD in 2020 to 7,925 million USD in 2021. Subsequently, it remains fairly steady through the years, fluctuating slightly within a narrow range—from 7,769 million USD in 2022 to 7,715 million USD in 2023—before rising again to 7,904 million USD in 2024. This pattern suggests consistent earnings generation before tax with limited volatility, indicating relative stability in core profitability before the impact of tax expenses.
- Earnings Before Interest and Tax (EBIT)
- EBIT has increased consistently from 7,022 million USD in 2020 to 9,089 million USD in 2024, despite some minor fluctuations. It rose steadily to 8,723 million in 2021, followed by a slight dip to 8,620 million in 2022, a modest gain to 8,745 million in 2023, and a more substantial increase in 2024. This steady growth in EBIT suggests improvement in operational efficiency or revenue generation capabilities, reflecting positive underlying business performance before the impact of financing costs and taxes.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA displays a pronounced upward trajectory from 8,176 million USD in 2020 to a peak of 10,490 million USD in 2023, with a minor decline to 10,482 million USD in 2024. This broad growth trend illustrates improving cash flow from operations and a strong earnings base when excluding non-cash expenses. The near plateau from 2023 to 2024, while marginal, suggests a nearing saturation point or operational limits reached in earnings expansion, meriting further monitoring.
Overall, the data depict solid improvements in operating earnings over the period, particularly highlighted by rising EBIT and EBITDA figures. While pre-tax earnings have stabilized, net income trends imply that factors such as taxes, interest, or other deductions may be influencing final profit outcomes. The slight plateau in EBITDA and net income in the final years calls for attention to future strategies to sustain growth momentum.
Enterprise Value to EBITDA Ratio, Current
Elevance Health Inc., 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 | |
| Abbott Laboratories | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | |
| EV/EBITDA, Industry | |
| Health Care | |
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
Elevance Health Inc., 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 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited significant growth from 2020 through 2023, increasing from 61,875 million US dollars in 2020 to a peak of 107,367 million US dollars in 2023. However, in 2024, there was a notable decline to 85,443 million US dollars, reversing part of the previous upward trend.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a steady increase over the period from 8,176 million US dollars in 2020 to 10,482 million US dollars in 2024. Growth was consistent, with no significant volatility, indicating improving operational profitability despite the decrease in enterprise value in 2024.
- EV/EBITDA Ratio
- The valuation multiple EV/EBITDA rose sharply from 7.57 in 2020 to above 10 in 2021, maintaining this elevated level through 2023, indicating that the market was valuing the company at a higher premium relative to its earnings before interest, tax, depreciation, and amortization. In 2024, the ratio declined notably to 8.15, reflecting a combination of a lower enterprise value and relatively stable EBITDA. This suggests a revaluation of the company's earnings potential or market sentiment adjustment.
- Overall Analysis
- Over the five-year period, the company experienced robust growth in operational earnings, as shown by the steady rise in EBITDA. The enterprise value showed considerable appreciation until 2023, followed by a significant decrease in 2024, which impacted the EV/EBITDA multiple, bringing it closer to earlier levels. This pattern may suggest external market factors or internal developments influencing market valuation despite ongoing operational improvements.