Stock Analysis on Net

General Electric Co. (NYSE:GE)

Enterprise Value to EBITDA (EV/EBITDA) 

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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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net earnings (loss) attributable to the Company 9,481 225 (6,520) 5,704 (4,979)
Add: Net income attributable to noncontrolling interest (38) 67 (71) (158) 67
Less: Earnings (loss) from discontinued operations, net of taxes 414 (644) (3,195) (126) (5,335)
Add: Income tax expense 1,162 476 (287) (475) 726
Earnings before tax (EBT) 10,191 1,412 (3,683) 5,197 1,149
Add: Interest and other financial charges 1,118 1,607 1,876 3,273 4,227
Earnings before interest and tax (EBIT) 11,309 3,019 (1,807) 8,470 5,376
Add: Depreciation and amortization of property, plant and equipment 1,473 1,802 1,871 4,636 4,026
Add: Amortization of intangible assets 606 1,742 1,138 1,382 1,569
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,388 6,563 1,202 14,488 10,971

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 Electric Co. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 184,411
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,388
Valuation Ratio
EV/EBITDA 13.77
Benchmarks
EV/EBITDA, Competitors1
Boeing Co. 63.10
Caterpillar Inc. 13.11
Cummins Inc. 15.07
Honeywell International Inc. 15.52
Lockheed Martin Corp. 11.56
RTX Corp. 16.79
EV/EBITDA, Sector
Capital Goods 15.81
EV/EBITDA, Industry
Industrials 15.35

Based on: 10-K (reporting date: 2023-12-31).

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 Electric Co., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 148,093 97,249 114,873 135,492 149,810
Earnings before interest, tax, depreciation and amortization (EBITDA)2 13,388 6,563 1,202 14,488 10,971
Valuation Ratio
EV/EBITDA3 11.06 14.82 95.57 9.35 13.66
Benchmarks
EV/EBITDA, Competitors4
Boeing Co. 71.32 284.02
Caterpillar Inc. 12.16 13.86 12.43 19.87 9.66
Cummins Inc. 13.70 10.89 9.57 12.03 7.34
Honeywell International Inc. 15.55 18.01 15.57 20.21 14.95
Lockheed Martin Corp. 11.71 14.98 11.97 9.97 14.86
RTX Corp. 16.62 14.92 15.48 41.71 12.60
EV/EBITDA, Sector
Capital Goods 15.24 18.38 19.31 24.10 15.89
EV/EBITDA, Industry
Industrials 15.13 16.68 15.90 26.21 17.30

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 148,093 ÷ 13,388 = 11.06

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. EV/EBITDA ratio decreased from 2021 to 2022 and from 2022 to 2023.