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Ford Motor Co. (F)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Ford Motor Co., EBITDA calculation

US$ in millions

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12 months ended Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Ford Motor Company 47  3,677  7,602  4,596  7,373 
Add: Net income attributable to noncontrolling interest 37  18  26  11  (2)
Add: Income tax expense (724) 650  520  2,189  2,881 
Earnings before tax (EBT) (640) 4,345  8,148  6,796  10,252 
Add: Interest expense 1,020  1,228  1,133  894  773 
Earnings before interest and tax (EBIT) 380  5,573  9,281  7,690  11,025 
Add: Depreciation and tooling amortization 9,689  9,280  9,122  9,023  7,993 
Add: Other amortization (1,199) (972) (669) (306) (27)
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,870  13,881  17,734  16,407  18,991 

Based on: 10-K (filing date: 2020-02-05), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

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. Ford Motor Co.’s EBITDA decreased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Ford Motor Co., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 87,628 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,870 
Valuation Ratio
EV/EBITDA 9.88
Benchmarks
EV/EBITDA, Competitors1
General Motors Co. 5.14
EV/EBITDA, Sector
Automobiles & Parts 6.49
EV/EBITDA, Industry
Consumer Goods 14.64

Based on: 10-K (filing date: 2020-02-05).

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

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 99,999  100,596  104,620  107,096  96,895 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,870  13,881  17,734  16,407  18,991 
Valuation Ratio
EV/EBITDA3 11.27 7.25 5.90 6.53 5.10
Benchmarks
EV/EBITDA, Competitors4
General Motors Co. 6.01 6.05 5.28 4.97 5.24
EV/EBITDA, Sector
Automobiles & Parts 7.51 6.50 5.54 5.62 5.17
EV/EBITDA, Industry
Consumer Goods 16.90 14.17 12.40 11.84 12.65

Based on: 10-K (filing date: 2020-02-05), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 99,999 ÷ 8,870 = 11.27

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. Ford Motor Co.’s EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019.