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Kimberly-Clark Corp. (NYSE:KMB)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Kimberly-Clark Corp., 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 Kimberly-Clark Corporation 2,157  1,410  2,278  2,166  1,013 
Add: Net income attributable to noncontrolling interest 40  35  41  53  53 
Add: Income tax expense 576  471  776  922  418 
Earnings before tax (EBT) 2,773  1,916  3,095  3,141  1,484 
Add: Interest expense 261  263  318  319  295 
Earnings before interest and tax (EBIT) 3,034  2,179  3,413  3,460  1,779 
Add: Depreciation and amortization 917  882  724  705  746 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,951  3,061  4,137  4,165  2,525 

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

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. Kimberly-Clark Corp.’s EBITDA decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Enterprise Value to EBITDA Ratio, Current

Kimberly-Clark Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 55,644 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,951 
Valuation Ratio
EV/EBITDA 14.08
Benchmarks
EV/EBITDA, Competitors1
Colgate-Palmolive Co. 17.37
Estée Lauder Cos. Inc. 24.23
Nike Inc. 27.18
EV/EBITDA, Sector
Personal Goods 21.16
EV/EBITDA, Industry
Consumer Goods 16.62

Based on: 10-K (filing date: 2020-02-13).

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

Kimberly-Clark Corp., 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 57,004  46,202  46,232  50,665  52,995 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,951  3,061  4,137  4,165  2,525 
Valuation Ratio
EV/EBITDA3 14.43 15.09 11.18 12.16 20.99
Benchmarks
EV/EBITDA, Competitors4
Colgate-Palmolive Co. 18.10 15.21 16.45 16.44 19.69
Estée Lauder Cos. Inc. 23.88 19.19 18.79 16.65 15.16
Nike Inc. 23.83 23.37 16.66 17.34 18.99
EV/EBITDA, Sector
Personal Goods 20.22 18.71 15.49 15.65 18.96
EV/EBITDA, Industry
Consumer Goods 17.43 15.01 13.58 12.58 14.07

Based on: 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-11).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 57,004 ÷ 3,951 = 14.43

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. Kimberly-Clark Corp.’s EV/EBITDA ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.