Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
General Motors Co., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals several notable trends related to the company's profitability and operational performance over a five-year period. The analysis focuses on multiple earnings metrics, including net income attributable to stockholders, earnings before tax, earnings before interest and tax, and earnings before interest, tax, depreciation, and amortization.
- Net Income Attributable to Stockholders
- There was a strong upward trend in net income from 2020 to 2021, increasing from $6,427 million to $10,019 million. However, this was followed by a slight decline in 2022 to $9,934 million and a marginal recovery in 2023 to $10,127 million. In 2024, net income decreased significantly to $6,008 million, marking the lowest point in the latter half of the period.
- Earnings Before Tax (EBT)
- EBT mirrored a similar pattern to net income, rising substantially from $8,095 million in 2020 to $12,716 million in 2021. Thereafter, it declined steadily over the next three years, falling to $11,597 million in 2022, $10,403 million in 2023, and down to $8,519 million by 2024.
- Earnings Before Interest and Tax (EBIT)
- The EBIT metric also demonstrated growth from 2020 to 2021, increasing from $9,193 million to $13,666 million. However, from 2022 onward, EBIT decreased consecutively each year, reaching $12,584 million in 2022, $11,314 million in 2023, and dropping further to $9,365 million in 2024.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a peak in 2021 at $25,717 million after an initial increase from $22,008 million in 2020. Similar to other earnings measures, EBITDA experienced a downward trend from 2022 through 2024, decreasing each year to $23,874 million, then $23,202 million, and finally $21,754 million, the lowest in the five-year span.
Overall, the data indicates a period of strong earnings growth between 2020 and 2021 across all key profitability metrics. Starting in 2022, there is a clear trend of decline each subsequent year through 2024. Notably, while all measures decreased, the drop in net income in 2024 is particularly pronounced, suggesting increased pressures on bottom-line profitability in the most recent year. The consistent decline in EBITDA and EBIT over the last three years may reflect challenges in operational efficiency or external market factors impacting earnings before non-cash charges and financing costs.
Enterprise Value to EBITDA Ratio, Current
General Motors Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 152,877) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 21,754) |
| Valuation Ratio | |
| EV/EBITDA | 7.03 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Ford Motor Co. | 10.25 |
| Tesla Inc. | 68.99 |
| EV/EBITDA, Sector | |
| Automobiles & Components | 25.41 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 19.38 |
Based on: 10-K (reporting date: 2024-12-31).
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 Motors Co., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 154,903) | 143,220) | 142,368) | 164,511) | 164,580) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 21,754) | 23,202) | 23,874) | 25,717) | 22,008) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 7.12 | 6.17 | 5.96 | 6.40 | 7.48 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Ford Motor Co. | 9.86 | 12.34 | 25.07 | 5.97 | 16.98 | |
| Tesla Inc. | 85.66 | 39.53 | 30.00 | 96.39 | 194.58 | |
| EV/EBITDA, Sector | ||||||
| Automobiles & Components | 30.01 | 17.43 | 17.29 | 20.13 | 32.21 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 20.66 | 18.14 | 19.78 | 21.32 | 29.33 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 154,903 ÷ 21,754 = 7.12
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value showed a slight decrease from 164,580 million US dollars at the end of 2020 to 164,511 million US dollars at the end of 2021. This was followed by a more notable decline to 142,368 million US dollars by the end of 2022. Thereafter, the value stabilized somewhat, increasing marginally to 143,220 million US dollars in 2023 and further rising to 154,903 million US dollars by the end of 2024. Overall, the enterprise value exhibited a downward trend until 2022, then partially recovered in the subsequent two years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated growth from 22,008 million US dollars in 2020 to a peak of 25,717 million US dollars in 2021. Subsequently, it experienced a decline over the next three years, falling to 23,874 million in 2022, 23,202 million in 2023, and further down to 21,754 million US dollars by the end of 2024. This indicates a peak in operational profitability in 2021, followed by a gradual reduction through 2024.
- EV/EBITDA Ratio
- The EV/EBITDA ratio showed a consistent decline from 7.48 in 2020 to a low of 5.96 in 2022. After 2022, the ratio started increasing again, reaching 6.17 in 2023 and advancing further to 7.12 in 2024. This pattern reflects a period where the company’s valuation became more attractive relative to its operational earnings until 2022, with a subsequent expansion in valuation multiples thereafter.