Enterprise Value to EBITDA (EV/EBITDA)
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- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
GE Aerospace, 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 provided figures, demonstrates a significant improvement over the observed period. A substantial increase in profitability is evident across all measured metrics, moving from a net loss in 2021 to positive earnings in subsequent years. The rate of growth appears to moderate in the later years of the period.
- EBITDA Trend
- Earnings before interest, tax, depreciation, and amortization (EBITDA) experienced a marked increase from US$1.202 billion in 2021 to US$6.563 billion in 2022. This growth continued into 2023, reaching US$13.388 billion, representing the highest value within the observed timeframe. While still positive, EBITDA decreased to US$9.790 billion in 2024 before recovering to US$12.063 billion in 2025. The 2024 decrease represents the only observed decline in EBITDA over the five-year period.
- Relationship between Net Income and EBITDA
- A strong correlation exists between EBITDA and net income attributable to the Company. The initial net loss in 2021 corresponded with a relatively low EBITDA figure. As EBITDA increased in subsequent years, net income moved into positive territory and grew substantially. This suggests that improvements in operational profitability, as reflected in EBITDA, directly contributed to the overall net income performance.
- EBITDA to EBIT and EBT Progression
- The progression from Earnings Before Tax (EBT) to Earnings Before Interest and Tax (EBIT) and finally to EBITDA reveals the impact of non-operating expenses. The difference between EBT and EBIT represents interest expense, while the difference between EBIT and EBITDA represents depreciation and amortization. The widening gap between these figures from 2021 to 2023 indicates increasing investments in depreciable assets or potentially changes in depreciation methods. The narrowing gap in 2024 and 2025 suggests a stabilization of these factors.
Overall, the financial figures indicate a period of substantial recovery and growth, with EBITDA serving as a key indicator of improving operational performance. While growth moderates towards the end of the period, the company maintains a strong and positive earnings trajectory.
Enterprise Value to EBITDA Ratio, Current
GE Aerospace, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| EV/EBITDA, Sector | |
| Capital Goods | |
| EV/EBITDA, Industry | |
| Industrials | |
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
GE Aerospace, 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 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Capital Goods | ||||||
| EV/EBITDA, Industry | ||||||
| Industrials | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits significant fluctuation over the observed period. Initially high, the ratio decreased substantially before increasing again in later years. Enterprise Value demonstrates an overall upward trend, while EBITDA also generally increases, though with some volatility.
- Enterprise Value
- Enterprise Value decreased from US$114,873 million in 2021 to US$97,249 million in 2022, representing a decline of approximately 15.3%. Subsequently, it increased significantly, reaching US$148,093 million in 2023, US$223,963 million in 2024, and further to US$321,771 million in 2025. This indicates a strong growth trajectory in Enterprise Value over the latter part of the period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced a substantial increase from US$1,202 million in 2021 to US$6,563 million in 2022, a more than five-fold increase. It continued to rise to US$13,388 million in 2023, before decreasing to US$9,790 million in 2024. A subsequent increase is observed in 2025, with EBITDA reaching US$12,063 million. This suggests some volatility in EBITDA performance, despite an overall positive trend.
- Enterprise Value to EBITDA Ratio
- The EV/EBITDA ratio began at 95.57 in 2021. A dramatic decrease was observed in 2022, falling to 14.82, largely attributable to the significant increase in EBITDA. The ratio continued to decline to 11.06 in 2023. In 2024, the ratio increased to 22.88, coinciding with a decrease in EBITDA despite a continued rise in Enterprise Value. The ratio further increased to 26.67 in 2025. The fluctuations suggest a changing relationship between the company’s enterprise value and its operational earnings.
The initial high ratio in 2021 suggests the enterprise was relatively expensive compared to its earnings. The subsequent decline indicates improved valuation or increased profitability. The recent increases in the ratio, however, may warrant further investigation to determine if the enterprise value is becoming overextended relative to EBITDA.