Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Ford Motor Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial performance, as indicated by the presented figures, demonstrates significant volatility over the five-year period. While initial years show robust earnings, subsequent periods reveal substantial fluctuations, culminating in a loss in the final year examined. A clear pattern of cyclicality is apparent across all reported metrics.
- Overall Earnings Trend
- Earnings before interest, tax, depreciation and amortization (EBITDA) began at US$26,901 million in 2021, then decreased substantially to US$5,885 million in 2022. A strong recovery followed, with EBITDA reaching US$12,959 million in 2023 and further increasing to US$15,915 million in 2024. However, this positive trend reversed sharply in 2025, resulting in a loss of US$2,742 million.
- Relationship between EBITDA and Other Earnings Metrics
- EBITDA consistently exceeded earnings before interest and tax (EBIT) throughout the period, as expected, due to the inclusion of depreciation and amortization expenses in the calculation of EBIT. The difference between EBITDA and EBIT remained relatively stable in the earlier years, but widened in 2024 before contracting significantly in 2025 alongside the overall decline in earnings.
- The gap between EBITDA and earnings before tax (EBT) also followed a similar pattern, influenced by interest expenses. The substantial decrease in EBT from 2021 to 2022, and again in 2025, was more pronounced than the decrease in EBITDA, suggesting a notable impact from interest expenses or tax liabilities during those periods.
- Net income attributable to Ford Motor Company exhibited the most dramatic fluctuations. A significant loss was recorded in 2022, followed by recovery in 2023 and 2024, and then a substantial loss in 2025. The volatility in net income was greater than that observed in EBITDA, EBIT, and EBT, indicating the influence of factors beyond operating performance, such as non-operating items or changes in tax rates.
- Year-over-Year Changes
- The largest year-over-year decrease in EBITDA occurred between 2021 and 2022, with a decline of US$21,016 million. Conversely, the largest year-over-year increase was observed between 2022 and 2023, with an increase of US$7,074 million. The decline from 2024 to 2025 was also substantial, amounting to US$18,657 million.
- Similar patterns of significant decline and recovery are evident in the other earnings metrics, reinforcing the cyclical nature of the company’s financial performance during the analyzed period.
In conclusion, the financial results demonstrate a period of initial strength followed by considerable volatility and ultimately a return to loss in the final year. The substantial fluctuations across all earnings metrics suggest sensitivity to external factors or internal operational challenges. Further investigation would be required to determine the underlying causes of these shifts.
AI Ask an analyst for more
Enterprise Value to EBITDA Ratio, Current
Ford Motor Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 172,112) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | (2,742) |
| Valuation Ratio | |
| EV/EBITDA | — |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| General Motors Co. | 9.43 |
| Tesla Inc. | 119.20 |
| EV/EBITDA, Sector | |
| Automobiles & Components | 63.68 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 19.28 |
Based on: 10-K (reporting date: 2025-12-31).
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 180,131) | 156,899) | 159,948) | 147,561) | 160,518) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | (2,742) | 15,915) | 12,959) | 5,885) | 26,901) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | — | 9.86 | 12.34 | 25.07 | 5.97 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| General Motors Co. | 9.91 | 7.12 | 6.17 | 5.96 | 6.40 | |
| Tesla Inc. | 129.90 | 85.66 | 39.53 | 30.00 | 96.39 | |
| EV/EBITDA, Sector | ||||||
| Automobiles & Components | 68.88 | 30.01 | 17.43 | 17.29 | 20.13 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 45.15 | 20.91 | 18.33 | 20.01 | 21.51 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 180,131 ÷ -2,742 = —
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited significant fluctuation over the observed period. Initial values indicate a relatively stable financial position, followed by considerable volatility and a concerning trend in the most recent year.
- Enterprise Value
- Enterprise Value demonstrated a decrease from $160,518 million in 2021 to $147,561 million in 2022. A subsequent recovery was noted in 2023, reaching $159,948 million, and continued modestly to $160,899 million in 2024. Further growth is projected, with Enterprise Value reaching $180,131 million in 2025.
- EBITDA
- EBITDA experienced a substantial decline from $26,901 million in 2021 to $5,885 million in 2022. A recovery began in 2023, with EBITDA increasing to $12,959 million, and continued into 2024, reaching $15,915 million. However, a significant downturn is projected for 2025, with EBITDA becoming negative at -$2,742 million.
- EV/EBITDA Ratio
- The EV/EBITDA ratio increased dramatically from 5.97 in 2021 to 25.07 in 2022, coinciding with the decline in EBITDA. The ratio decreased to 12.34 in 2023 and further to 9.86 in 2024, reflecting the improvement in EBITDA. The projected negative EBITDA for 2025 results in an undefined EV/EBITDA ratio, indicating a potentially unfavorable valuation and a significant shift in financial performance. The initial decrease in the ratio from 2022 to 2024 suggests improving efficiency or a more favorable valuation, but the projected 2025 outcome raises concerns about future profitability and financial health.
The trend suggests a period of financial challenge in 2022, followed by recovery through 2024. However, the projected negative EBITDA for 2025 warrants further investigation to understand the underlying causes and potential implications for the company’s financial stability.
AI Ask an analyst for more