Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Humana Inc., EBITDA calculation
US$ in millions
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. | Humana Inc. EBITDA increased from 2021 to 2022 but then slightly decreased from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Humana Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 28,270) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,730) |
| Valuation Ratio | |
| EV/EBITDA | 5.98 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 18.31 |
| Cigna Group | 12.65 |
| CVS Health Corp. | 7.42 |
| Elevance Health Inc. | 10.89 |
| Intuitive Surgical Inc. | 53.44 |
| Medtronic PLC | 14.01 |
| Shockwave Medical Inc. | 62.88 |
| UnitedHealth Group Inc. | 13.49 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 13.28 |
| EV/EBITDA, Industry | |
| Health Care | 18.20 |
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
Humana Inc., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | 34,660) | 55,740) | 50,040) | 38,505) | 39,875) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,730) | 4,810) | 4,458) | 5,573) | 4,287) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 7.33 | 11.59 | 11.22 | 6.91 | 9.30 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 19.49 | 15.85 | 17.42 | 25.99 | 21.70 | |
| Cigna Group | 12.11 | 8.88 | 9.06 | 6.31 | 8.42 | |
| CVS Health Corp. | 8.03 | 12.42 | 10.41 | 8.56 | 9.43 | |
| Elevance Health Inc. | 10.24 | 10.26 | 10.05 | 7.57 | 9.05 | |
| Intuitive Surgical Inc. | 53.82 | 41.52 | 44.54 | 59.12 | 37.53 | |
| Medtronic PLC | 15.28 | 14.99 | 24.41 | 17.92 | 16.01 | |
| Shockwave Medical Inc. | 49.39 | 52.02 | — | — | — | |
| UnitedHealth Group Inc. | 13.60 | 15.11 | 17.39 | 13.39 | 13.82 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 13.58 | 13.91 | 15.27 | 12.79 | 12.97 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 18.80 | 13.80 | 13.98 | 16.48 | 14.28 | |
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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 34,660 ÷ 4,730 = 7.33
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. | Humana Inc. EV/EBITDA ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |