Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Kellanova, EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
Financial performance over the period from 2019 to 2023 exhibits a distinct bell-shaped trajectory, characterized by an expansion phase that peaked in 2021, followed by a contraction in 2022 and 2023.
- EBITDA Trends
- Earnings before interest, tax, depreciation, and amortization showed consistent growth in the early part of the period, rising from US$ 2,066 million in 2019 to a peak of US$ 2,659 million in 2021. A significant reversal occurred in 2022, where EBITDA dropped to US$ 1,902 million, with a further decline to US$ 1,768 million by the end of 2023.
- Operational Profitability
- Earnings before interest and tax (EBIT) mirrored the EBITDA trend, ascending from US$ 1,582 million in 2019 to US$ 2,192 million in 2021. The subsequent decline to US$ 1,349 million in 2023 indicates a compression of operating margins or an increase in operating expenses during the final two years of the analyzed period.
- Bottom-Line Performance
- Net income attributable to Kellanova grew from US$ 960 million in 2019 to a high of US$ 1,488 million in 2021. However, this gain was entirely eroded by 2023, as net income fell to US$ 951 million, representing a return to 2019 baseline levels.
- Expense and Margin Observations
- The variance between EBITDA and EBIT remained relatively stable through 2022, suggesting consistent depreciation and amortization charges, though a tighter gap is observed in 2023. Conversely, the gap between EBIT and Earnings before tax (EBT) widened in 2023, suggesting an increase in interest expenses or other non-operating costs relative to the operational output.
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Enterprise Value to EBITDA Ratio, Current
Kellanova, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 27,032) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,768) |
| Valuation Ratio | |
| EV/EBITDA | 15.29 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | 23.71 |
| Mondelēz International Inc. | 19.73 |
| PepsiCo Inc. | 14.96 |
| Philip Morris International Inc. | 19.50 |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | 21.14 |
| EV/EBITDA, Industry | |
| Consumer Staples | 25.48 |
Based on: 10-K (reporting date: 2023-12-30).
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
Kellanova, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 24,915) | 30,255) | 29,912) | 27,946) | 30,155) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,768) | 1,902) | 2,659) | 2,347) | 2,066) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 14.09 | 15.91 | 11.25 | 11.91 | 14.60 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Coca-Cola Co. | 18.69 | 20.83 | 19.52 | — | — | |
| Mondelēz International Inc. | 14.65 | 21.64 | 15.62 | — | — | |
| PepsiCo Inc. | 16.75 | 18.63 | 18.42 | — | — | |
| Philip Morris International Inc. | 13.66 | 14.78 | 13.64 | — | — | |
| EV/EBITDA, Sector | ||||||
| Food, Beverage & Tobacco | 16.21 | 18.49 | 17.05 | — | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Staples | 16.39 | 16.42 | 15.65 | — | — | |
Based on: 10-K (reporting date: 2023-12-30), 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: 2019-12-28).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 24,915 ÷ 1,768 = 14.09
4 Click competitor name to see calculations.
An analysis of the enterprise value to EBITDA ratio reveals a period of volatility characterized by an initial contraction in valuation multiples, followed by a sharp spike and a subsequent correction.
- Enterprise Value Trends
- The enterprise value remained relatively stable between 2019 and 2022, fluctuating within a range of approximately 28 billion to 30 billion USD. A significant shift occurred in 2023, when the enterprise value declined to 24,915 million USD, marking a notable reduction in the overall valuation of the entity.
- EBITDA Performance
- Operational earnings experienced a growth phase from 2019 to 2021, peaking at 2,659 million USD. This trend reversed sharply in 2022, with EBITDA falling to 1,902 million USD, and continuing to decline to 1,768 million USD by the end of 2023, indicating a contraction in core operational profitability.
- EV/EBITDA Ratio Dynamics
- The EV/EBITDA ratio moved from 14.60 in 2019 to a low of 11.25 in 2021, reflecting improved operational efficiency relative to market valuation. The ratio spiked to a five-year high of 15.91 in 2022, a result of the sharp decline in EBITDA occurring while the enterprise value remained high. In 2023, the ratio moderated to 14.09, as the decrease in enterprise value offset the ongoing decline in EBITDA.
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