Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
General Dynamics Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| 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. 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
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 49,032) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 5,503) |
| Valuation Ratio | |
| EV/EBITDA | 8.91 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 59.93 |
| Caterpillar Inc. | 12.66 |
| Cummins Inc. | 15.33 |
| Eaton Corp. plc | 27.20 |
| General Electric Co. | 13.15 |
| Honeywell International Inc. | 15.23 |
| Lockheed Martin Corp. | 12.21 |
| RTX Corp. | 17.95 |
| EV/EBITDA, Sector | |
| Capital Goods | 18.58 |
| EV/EBITDA, Industry | |
| Industrials | 21.45 |
Based on: 10-K (reporting date: 2019-12-31).
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
General Dynamics Corp., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | — | — | — | — | |
| Caterpillar Inc. | 9.66 | — | — | — | — | |
| Cummins Inc. | 7.34 | — | — | — | — | |
| Eaton Corp. plc | 12.86 | — | — | — | — | |
| General Electric Co. | 13.66 | — | — | — | — | |
| Honeywell International Inc. | 14.95 | — | — | — | — | |
| Lockheed Martin Corp. | 14.86 | — | — | — | — | |
| RTX Corp. | 12.60 | — | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 15.70 | — | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 17.09 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
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. EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |