Ford Motor Co. (F)
Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Ford Motor Co., EBITDA calculation
USD $ in millions
|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 increased from 2016 to 2017 but then declined significantly from 2017 to 2018.|
Enterprise Value to EBITDA Ratio, Current
Ford Motor Co., current EV/EBITDA calculation, comparison to benchmarks
|Selected Financial Data (USD $ in millions)|
|Enterprise value (EV)||106,995|
|Earnings before interest, tax, depreciation and amortization (EBITDA)||13,881|
|General Motors Co.||5.88|
|Automobiles & Parts||6.57|
Based on: 10-K (filing date: 2019-02-21).
If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if 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
3 EV/EBITDA = EV ÷ EBITDA
= 100,596 ÷ 13,881 = 7.25
|EV/EBITDA||EV/EBITDA is a valuation indicator for the overall company rather than common stock.||Ford Motor Co.’s EV/EBITDA ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.|