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Honeywell International Inc. (HON)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Honeywell International Inc., 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 income attributable to Honeywell 6,143  6,765  1,655  4,809  4,768 
Add: Net income attributable to noncontrolling interest 87  63  43  37  79 
Add: Income tax expense 1,329  659  5,204  1,601  1,739 
Earnings before tax (EBT) 7,559  7,487  6,902  6,447  6,586 
Add: Interest and other financial charges 357  367  316  338  310 
Earnings before interest and tax (EBIT) 7,916  7,854  7,218  6,785  6,896 
Add: Depreciation 673  721  717  726  672 
Add: Amortization 415  395  398  304  211 
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,004  8,970  8,333  7,815  7,779 

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12).

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. Honeywell International Inc.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Honeywell International Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 133,653 
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,004 
Valuation Ratio
EV/EBITDA 14.84
Benchmarks
EV/EBITDA, Competitors1
3M Co. 14.11
Danaher Corp. 26.64
General Electric Co. —
EV/EBITDA, Sector
General Industrials 34.10
EV/EBITDA, Industry
Industrials 16.38

Based on: 10-K (filing date: 2020-02-14).

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

Honeywell International Inc., 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)1 134,643  113,831  118,449  99,342  86,358 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 9,004  8,970  8,333  7,815  7,779 
Valuation Ratio
EV/EBITDA3 14.95 12.69 14.21 12.71 11.10
Benchmarks
EV/EBITDA, Competitors4
3M Co. 14.41 14.31 15.15 13.21 11.90
Danaher Corp. — 18.47 17.93 17.88 15.88
General Electric Co. — — 161.16 16.21 22.55
EV/EBITDA, Sector
General Industrials — 30.71 22.96 15.02 16.94
EV/EBITDA, Industry
Industrials — 15.02 15.26 13.29 11.89

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-02-12).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 134,643 ÷ 9,004 = 14.95

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. Honeywell International Inc.’s EV/EBITDA ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.