Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Raytheon Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
| 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. | Raytheon Co. EBITDA increased from 2017 to 2018 and from 2018 to 2019. |
Enterprise Value to EBITDA Ratio, Current
Raytheon Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 64,443) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,771) |
| Valuation Ratio | |
| EV/EBITDA | 13.51 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | 59.93 |
| Caterpillar Inc. | 12.66 |
| Cummins Inc. | 15.33 |
| Eaton Corp. plc | 27.20 |
| General Electric Co. | 13.15 |
| Honeywell International Inc. | 15.23 |
| Lockheed Martin Corp. | 12.21 |
| RTX Corp. | 17.95 |
| EV/EBITDA, Sector | |
| Capital Goods | 18.58 |
| EV/EBITDA, Industry | |
| Industrials | 21.45 |
Based on: 10-K (reporting date: 2019-12-31).
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
Raytheon Co., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | 64,443) | 52,515) | 62,981) | 46,438) | 40,176) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,771) | 3,899) | 3,868) | 3,777) | 3,509) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 13.51 | 13.47 | 16.28 | 12.29 | 11.45 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | 284.02 | — | — | — | — | |
| Caterpillar Inc. | 9.66 | — | — | — | — | |
| Cummins Inc. | 7.34 | — | — | — | — | |
| Eaton Corp. plc | 12.86 | — | — | — | — | |
| General Electric Co. | 13.66 | — | — | — | — | |
| Honeywell International Inc. | 14.95 | — | — | — | — | |
| Lockheed Martin Corp. | 14.86 | — | — | — | — | |
| RTX Corp. | 12.60 | — | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Capital Goods | 15.70 | — | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Industrials | 17.09 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 64,443 ÷ 4,771 = 13.51
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. | Raytheon Co. EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |