Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Lockheed Martin Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net earnings
- Net earnings show a fluctuating trend over the five-year period. Starting at 6,833 million USD in 2020, there is a decline in 2021 and 2022, reaching 5,732 million USD. The figure then rises sharply to 6,920 million USD in 2023 but decreases again to 5,336 million USD in 2024. Overall, the net earnings demonstrate volatility with a downward tendency at the end of the period.
- Earnings before tax (EBT)
- The earnings before tax follow a similar pattern to net earnings. Beginning at 8,235 million USD in 2020, the value declines steadily to 6,680 million USD in 2022. It then increases significantly to 8,098 million USD in 2023 before dropping again to 6,220 million USD in 2024. This indicates cyclical fluctuations with an overall decrease over the five years.
- Earnings before interest and tax (EBIT)
- EBIT experiences an initial decrease from 8,826 million USD in 2020 to 7,303 million USD in 2022. This is followed by an increase to 9,014 million USD in 2023, then a decline to 7,256 million USD in 2024. The pattern is consistent with EBT and net earnings, showing variability but generally trending downwards by the end of the period.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA also displays a similar pattern: a decline from 10,116 million USD in 2020 to 8,707 million USD in 2022, a rise to 10,444 million USD in 2023, and a subsequent fall to 8,815 million USD in 2024. Despite the fluctuations, EBITDA remains the highest value metric, suggesting that non-cash expenses such as depreciation and amortization contribute to variability.
Enterprise Value to EBITDA Ratio, Current
Lockheed Martin Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 122,314) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 8,815) |
| Valuation Ratio | |
| EV/EBITDA | 13.88 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | — |
| Caterpillar Inc. | 14.55 |
| Eaton Corp. plc | 25.23 |
| GE Aerospace | 29.38 |
| Honeywell International Inc. | 16.74 |
| RTX Corp. | 19.69 |
| EV/EBITDA, Sector | |
| Capital Goods | 25.41 |
| EV/EBITDA, Industry | |
| Industrials | 18.88 |
Based on: 10-K (reporting date: 2024-12-31).
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
Lockheed Martin Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 125,464) | 122,260) | 130,388) | 113,509) | 100,886) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 8,815) | 10,444) | 8,707) | 9,483) | 10,116) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 14.23 | 11.71 | 14.98 | 11.97 | 9.97 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | — | 71.32 | — | — | — | |
| Caterpillar Inc. | 12.46 | 12.16 | 13.86 | 12.43 | 19.87 | |
| Eaton Corp. plc | 21.53 | 24.91 | 19.18 | 17.06 | 22.11 | |
| GE Aerospace | 22.88 | 11.06 | 14.82 | 95.57 | 9.35 | |
| Honeywell International Inc. | 15.87 | 15.55 | 18.01 | 15.57 | 20.21 | |
| RTX Corp. | 16.80 | 16.62 | 14.92 | 15.48 | 41.71 | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 21.78 | 16.03 | 19.01 | 19.87 | 25.02 | |
| EV/EBITDA, Industry | ||||||
| Industrials | 17.18 | 14.82 | 16.44 | 16.30 | 30.80 | |
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 125,464 ÷ 8,815 = 14.23
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated an overall increasing trend from 2020 to 2024. Starting at approximately 100.9 billion US dollars in 2020, it rose steadily to reach 130.4 billion US dollars in 2022. However, it experienced a decline in 2023, dropping to 122.3 billion US dollars, before partially rebounding to 125.5 billion US dollars in 2024. This pattern indicates a general upward movement with some volatility towards the end of the period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA showed a differing trend compared to EV. It started at 10.1 billion US dollars in 2020, then gradually decreased over the next two years to 8.7 billion US dollars in 2022. A notable increase occurred in 2023, with EBITDA rising to 10.4 billion US dollars, followed by a decline again to 8.8 billion US dollars in 2024. This fluctuation suggests variability in operating performance or profitability across the years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio displayed significant variation over the observed period. It increased consistently from 9.97 in 2020 to 14.98 in 2022, indicating that the enterprise value grew at a faster rate than EBITDA, potentially reflecting increased market valuation relative to earnings or a decrease in operational profitability. Subsequently, the ratio decreased to 11.71 in 2023 amidst the EBITDA increase and EV decline, and then rose again to 14.23 in 2024, corresponding with the reduction in EBITDA and moderate increase in EV. These fluctuations suggest changing market expectations or shifts in operational efficiency impacting valuation multiples.