Stock Analysis on Net
Stock Analysis on Net
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General Electric Co. (NYSE:GE)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

General Electric Co., 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 (loss) attributable to the Company (4,979) (22,355) (5,786) 8,831  (6,126)
Add: Net income attributable to noncontrolling interest 67  (88) (270) (291) 331 
Less: Loss from discontinued operations, net of taxes (5,335) (1,726) (308) (954) (7,495)
Add: Income tax expense 726  583  (3,043) (464) 6,486 
Earnings before tax (EBT) 1,149  (20,134) (8,791) 9,030  8,186 
Add: Interest and other financial charges 4,227  5,059  4,869  5,025  3,463 
Earnings before interest and tax (EBIT) 5,376  (15,075) (3,922) 14,055  11,649 
Add: Depreciation and amortization of property, plant and equipment 4,026  5,562  5,139  4,997  4,847 
Add: Amortization of intangible assets 1,569  2,662  —  —  — 
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,971  (6,851) 1,217  19,052  16,496 

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

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 Electric Co.’s EBITDA decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Enterprise Value to EBITDA Ratio, Current

General Electric Co., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 98,621 
Earnings before interest, tax, depreciation and amortization (EBITDA) 10,971 
Valuation Ratio
EV/EBITDA 8.99
Benchmarks
EV/EBITDA, Competitors1
3M Co. 15.47
Honeywell International Inc. 16.96
EV/EBITDA, Sector
General Industrials 13.39
EV/EBITDA, Industry
Industrials 15.71

Based on: 10-K (filing date: 2020-02-24).

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 Electric Co., 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)1 111,177  154,405  196,136  308,838  372,010 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 10,971  (6,851) 1,217  19,052  16,496 
Valuation Ratio
EV/EBITDA3 10.13 — 161.16 16.21 22.55
Benchmarks
EV/EBITDA, Competitors4
3M Co. 14.41 14.31 15.15 13.21 11.90
Honeywell International Inc. 14.95 12.69 14.21 12.71 11.10
EV/EBITDA, Sector
General Industrials 12.89 36.03 24.11 14.71 17.09
EV/EBITDA, Industry
Industrials 15.05 14.86 14.99 13.09 11.86

Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-24), 10-K (filing date: 2016-02-26).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 111,177 ÷ 10,971 = 10.13

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 Electric Co.’s EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.