Enterprise Value to EBITDA (EV/EBITDA)
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- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Ford Motor Co., 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 Income (Loss) Attributable to Ford Motor Company
- The net income shows considerable volatility over the reported periods. In 2020, there was a significant loss of 1,279 million USD. This shifted dramatically to a substantial profit of 17,937 million USD in 2021, indicating a strong recovery or favorable conditions during that year. However, in 2022, net income again turned negative, with a loss of 1,981 million USD. The subsequent years of 2023 and 2024 reflect a return to profitability, with net income increasing to 4,347 million USD and further to 5,879 million USD respectively, demonstrating an improving trend in financial performance.
- Earnings Before Tax (EBT)
- EBT figures mirror the net income trends with significant fluctuations. The period started with a loss of 1,116 million USD in 2020, followed by a strong positive jump to 17,780 million USD in 2021. The year 2022 again showed a decline, resulting in a loss of 3,016 million USD. From 2023 onwards, EBT figures recover again, rising to 3,967 million USD and then nearly doubling to 7,233 million USD in 2024, pointing to an overall positive trajectory in pre-tax earnings after a period of instability.
- Earnings Before Interest and Tax (EBIT)
- EBIT presents a slightly different pattern with positive earnings in 2020 of 533 million USD, followed by a marked increase in 2021 to 19,583 million USD. The sharp decline in 2022 leads to a negative value of -1,757 million USD. Recovery efforts appear successful from 2023 onward, with EBIT rising to 5,269 million USD and then to 8,348 million USD in 2024, indicating improved operational profitability after a downturn.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA figures show a strong peak in 2021 at 26,901 million USD following an already healthy value of 9,284 million USD in 2020. There is a notable decline in 2022 to 5,885 million USD, which, while still positive, represents a significant drop in operational cash flow capability. Subsequent years see a steady improvement with EBITDA increasing to 12,959 million USD in 2023 and further to 15,915 million USD in 2024, indicating a recovery and enhancement of core earnings before non-cash charges.
Enterprise Value to EBITDA Ratio, Current
Ford Motor Co., 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 | |
| General Motors Co. | |
| Tesla Inc. | |
| EV/EBITDA, Sector | |
| Automobiles & Components | |
| EV/EBITDA, Industry | |
| Consumer Discretionary | |
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
Ford Motor Co., 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 | ||||||
| General Motors Co. | ||||||
| Tesla Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Automobiles & Components | ||||||
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | ||||||
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.
The analysis of the provided annual financial data reveals notable variations and trends over the five-year period ending December 31, 2024.
- Enterprise Value (EV)
- The enterprise value remained relatively stable across the years, fluctuating within a range from approximately $147.6 billion to $160.5 billion. It peaked at $160.5 billion in 2021, decreased to its lowest point at $147.6 billion in 2022, then showed a recovery trend, rising to about $159.9 billion in 2023, and slightly declining again to $156.9 billion in 2024. Overall, this suggests moderate volatility but no significant long-term upward or downward trend in EV during the period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA displayed considerable volatility. There was a sharp increase from $9.3 billion in 2020 to a substantial peak of $26.9 billion in 2021, marking nearly a threefold rise. However, in 2022, EBITDA dropped dramatically to $5.9 billion, representing a significant contraction. The subsequent years approximate a recovery trajectory, with EBITDA increasing to $13.0 billion in 2023 and further to $15.9 billion in 2024. Despite this recovery, EBITDA in 2024 remained below the peak levels observed in 2021.
- EV/EBITDA Ratio
- The EV/EBITDA ratio, which measures the valuation multiple relative to earnings before interest, tax, depreciation, and amortization, demonstrated significant fluctuation aligned with EBITDA movements. In 2020, the ratio was approximately 17. It declined sharply to about 6 in 2021, reflecting the spike in EBITDA that year. The ratio then surged to over 25 in 2022 corresponding to the EBITDA downturn, indicating a relatively higher valuation per unit of earnings. Subsequently, the ratio decreased to 12.3 in 2023 and further to 9.9 in 2024, aligning with EBITDA's recovery while EV remained relatively stable. This pattern suggests that earnings volatility largely influenced valuation multiples during the period.
In summary, the financial data indicates a period marked by substantial operational earnings volatility, with EBITDA demonstrating sharp rises and declines, while enterprise value showed relative stability with modest fluctuations. The valuation multiple (EV/EBITDA) moved inversely to earnings changes, reflecting shifting market perceptions of profitability and value. The recovery in EBITDA after 2022 contributes to improved valuation multiples by 2024, although not fully reaching the peak levels experienced in 2021.