Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
HCA Healthcare Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| 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. | HCA Healthcare Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021. |
Enterprise Value to EBITDA Ratio, Current
HCA Healthcare Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 99,463) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 14,252) |
| Valuation Ratio | |
| EV/EBITDA | 6.98 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 18.05 |
| Cigna Group | 12.48 |
| CVS Health Corp. | 7.56 |
| Danaher Corp. | 25.00 |
| Elevance Health Inc. | 10.57 |
| Humana Inc. | 6.33 |
| Intuitive Surgical Inc. | 52.99 |
| Medtronic PLC | 14.00 |
| UnitedHealth Group Inc. | 13.47 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 14.91 |
| EV/EBITDA, Industry | |
| Health Care | 15.04 |
Based on: 10-K (reporting date: 2021-12-31).
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
HCA Healthcare Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 109,659) | 91,822) | 85,468) | 82,972) | 69,421) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 14,252) | 9,735) | 9,664) | 9,368) | 8,202) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 7.69 | 9.43 | 8.84 | 8.86 | 8.46 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 17.42 | 25.99 | 21.70 | — | — | |
| Cigna Group | 9.06 | 6.31 | 8.42 | — | — | |
| CVS Health Corp. | 10.41 | 8.56 | 9.43 | — | — | |
| Danaher Corp. | 21.05 | 26.68 | 25.23 | — | — | |
| Elevance Health Inc. | 10.05 | 7.57 | 9.05 | — | — | |
| Humana Inc. | 11.22 | 6.91 | 9.30 | — | — | |
| Intuitive Surgical Inc. | 44.54 | 59.12 | 37.53 | — | — | |
| Medtronic PLC | 24.41 | 17.92 | 16.01 | 13.94 | — | |
| UnitedHealth Group Inc. | 17.39 | 13.39 | 13.82 | — | — | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 15.77 | 13.69 | 13.61 | — | — | |
| EV/EBITDA, Industry | ||||||
| Health Care | 13.77 | 16.27 | 14.09 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 109,659 ÷ 14,252 = 7.69
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. | HCA Healthcare Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |