Stock Analysis on Net
Stock Analysis on Net
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General Dynamics Corp. (NYSE:GD)

This company was transferred to the archive: financial data is no longer updated!

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

General Dynamics Corp., 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 earnings 3,484  3,345  2,912  2,955  2,965 
Less: Discontinued operations, net of tax —  (13) —  (107) — 
Add: Income tax expense 718  727  1,165  1,169  1,137 
Earnings before tax (EBT) 4,202  4,085  4,077  4,231  4,102 
Add: Interest expense 472  374  117  99  98 
Earnings before interest and tax (EBIT) 4,674  4,459  4,194  4,330  4,200 
Add: Depreciation of property, plant and equipment 466  493  362  366  366 
Add: Amortization of intangible and finance lease right-of-use assets 363  270  79  88  116 
Earnings before interest, tax, depreciation and amortization (EBITDA) 5,503  5,222  4,635  4,784  4,682 

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

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. General Dynamics Corp.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

General Dynamics Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 66,936 
Earnings before interest, tax, depreciation and amortization (EBITDA) 5,503 
Valuation Ratio
EV/EBITDA 12.16
Benchmarks
EV/EBITDA, Competitors1
Boeing Co.
Lockheed Martin Corp. 11.62
Northrop Grumman Corp. 12.48
Raytheon Technologies Corp. 48.14
EV/EBITDA, Sector
Aerospace & Defense 18.44
EV/EBITDA, Industry
Industrials 18.55

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

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

General Dynamics Corp., 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 64,971  61,457  63,216  56,968  41,768 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 5,503  5,222  4,635  4,784  4,682 
Valuation Ratio
EV/EBITDA3 11.81 11.77 13.64 11.91 8.92
Benchmarks
EV/EBITDA, Competitors4
Boeing Co. 284.02 16.52 16.31 12.89
Lockheed Martin Corp. 14.86 12.86 15.32 12.94
Northrop Grumman Corp. 17.54 11.68 16.21 12.12
Raytheon Technologies Corp. 12.60 12.19 11.02 10.44
EV/EBITDA, Sector
Aerospace & Defense 20.84 13.83 14.41 11.92
EV/EBITDA, Industry
Industrials 15.50 15.28 15.38 13.51

Based on: 10-K (filing date: 2020-02-10), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-06), 10-K (filing date: 2016-02-08).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 64,971 ÷ 5,503 = 11.81

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. General Dynamics Corp.’s EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.