Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Raytheon Technologies Corp., EBITDA calculation
US$ in millions
Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09).
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 Technologies Corp.’s EBITDA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Enterprise Value to EBITDA Ratio, Current
Raytheon Technologies Corp., current EV/EBITDA calculation, comparison to benchmarks
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 138,169 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,211 |
Valuation Ratio | |
EV/EBITDA | 43.03 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Boeing Co. | — |
Lockheed Martin Corp. | 10.27 |
Northrop Grumman Corp. | 10.72 |
EV/EBITDA, Sector | |
Aerospace & Defense | 16.74 |
EV/EBITDA, Industry | |
Industrials | 16.52 |
Based on: 10-K (filing date: 2021-02-08).
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 Technologies Corp., historical EV/EBITDA calculation, comparison to benchmarks
Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 134,857 | 173,888 | 145,579 | 120,307 | 107,051 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,211 | 13,799 | 11,938 | 10,920 | 10,256 | |
Valuation Ratio | ||||||
EV/EBITDA3 | 42.00 | 12.60 | 12.19 | 11.02 | 10.44 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Boeing Co. | — | 284.02 | 16.52 | 16.31 | 12.89 | |
Lockheed Martin Corp. | 9.97 | 14.86 | 12.86 | 15.32 | 12.94 | |
Northrop Grumman Corp. | 10.55 | 17.54 | 11.68 | 16.21 | 12.12 | |
EV/EBITDA, Sector | ||||||
Aerospace & Defense | — | 20.84 | 13.83 | 14.41 | 11.92 | |
EV/EBITDA, Industry | ||||||
Industrials | — | 15.50 | 15.28 | 15.38 | 13.51 |
Based on: 10-K (filing date: 2021-02-08), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09).
3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 134,857 ÷ 3,211 = 42.00
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 Technologies Corp.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020. |