This company was transferred to the archive: financial data is no longer updated!

Raytheon Co. (NYSE:RTN)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

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

Raytheon Co., EBITDA calculation

US$ in millions

12 months ended	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Raytheon Company	3,343	2,909	2,024	2,211	2,074
Add: Net income attributable to noncontrolling interest	(14)	(27)	(23)	(37)	(7)
Less: Income (loss) from discontinued operations, net of tax	1	(1)	2	1	13
Add: Income tax expense	658	264	1,114	857	733
Earnings before tax (EBT)	3,986	3,147	3,113	3,030	2,787
Add: Interest expense	180	184	205	232	233
Earnings before interest and tax (EBIT)	4,166	3,331	3,318	3,262	3,020
Add: Depreciation and amortization	605	568	550	515	489
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,771	3,899	3,868	3,777	3,509

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

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.’s 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)	33,034
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,771
Valuation Ratio
EV/EBITDA	6.92
Benchmarks
EV/EBITDA, Competitors¹
Boeing Co.	140.43
General Dynamics Corp.	9.08
Lockheed Martin Corp.	12.26
Northrop Grumman Corp.	16.17
Raytheon Technologies Corp.	6.43
EV/EBITDA, Sector
Aerospace & Defense	12.47
EV/EBITDA, Industry
Industrials	11.65

Based on: 10-K (filing date: 2020-02-12).

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	16.52	16.31	12.89	8.11
General Dynamics Corp.	11.81	11.77	13.64	11.91	8.92
Lockheed Martin Corp.	14.86	12.86	15.32	12.94	12.38
Northrop Grumman Corp.	18.60	11.68	16.21	12.12	10.78
Raytheon Technologies Corp.	12.60	12.19	11.02	10.44	9.23
EV/EBITDA, Sector
Aerospace & Defense	19.50	13.59	14.32	11.92	9.65
EV/EBITDA, Industry
Industrials	15.33	15.07	15.23	13.32	11.91

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

¹ See details »

² See details »

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