Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Estée Lauder Cos. Inc., EBITDA calculation
US$ in millions
Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).
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. | Estée Lauder Cos. Inc.’s EBITDA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Enterprise Value to EBITDA Ratio, Current
Estée Lauder Cos. Inc., current EV/EBITDA calculation, comparison to benchmarks
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 114,427 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,818 |
Valuation Ratio | |
EV/EBITDA | 62.94 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Colgate-Palmolive Co. | 17.29 |
Kimberly-Clark Corp. | 13.45 |
Nike Inc. | 51.26 |
EV/EBITDA, Sector | |
Personal Goods | 31.70 |
EV/EBITDA, Industry | |
Consumer Goods | 22.82 |
Based on: 10-K (filing date: 2020-08-28).
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
Estée Lauder Cos. Inc., historical EV/EBITDA calculation, comparison to benchmarks
Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 81,575 | 71,573 | 50,639 | 41,036 | 33,971 | 30,769 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,818 | 2,997 | 2,639 | 2,184 | 2,041 | 2,030 | |
Valuation Ratio | |||||||
EV/EBITDA3 | 44.87 | 23.88 | 19.19 | 18.79 | 16.65 | 15.16 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Colgate-Palmolive Co. | 16.91 | 18.10 | 15.21 | 16.45 | 16.44 | — | |
Kimberly-Clark Corp. | 12.86 | 14.43 | 15.09 | 11.18 | 12.16 | — | |
Nike Inc. | 37.14 | 23.83 | 23.37 | 16.66 | 17.34 | 18.99 | |
EV/EBITDA, Sector | |||||||
Personal Goods | 25.09 | 20.22 | 18.71 | 15.49 | 15.65 | — | |
EV/EBITDA, Industry | |||||||
Consumer Goods | 22.39 | 18.89 | 13.55 | 14.11 | 12.51 | — |
Based on: 10-K (filing date: 2020-08-28), 10-K (filing date: 2019-08-23), 10-K (filing date: 2018-08-24), 10-K (filing date: 2017-08-25), 10-K (filing date: 2016-08-24), 10-K (filing date: 2015-08-20).
3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 81,575 ÷ 1,818 = 44.87
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. | Estée Lauder Cos. Inc.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020. |