Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
RTX Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial information reveals a fluctuating pattern in profitability metrics over the five-year period. While net income and earnings before tax experienced volatility, earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation and amortization (EBITDA) generally demonstrated an upward trajectory, albeit with some interim declines.
- EBITDA Trend
- EBITDA increased from US$10,818 million in 2021 to US$11,435 million in 2022, representing a growth of approximately 5.7%. A subsequent decrease was observed in 2023, with EBITDA falling to US$9,700 million. However, a strong recovery occurred in 2024, reaching US$12,528 million, followed by further growth to US$14,946 million in 2025. This indicates a potential strengthening of core operational profitability in the latter years of the period.
- Relationship between EBITDA and EBIT
- EBIT also exhibited growth, moving from US$6,261 million in 2021 to US$7,327 million in 2022, then declining to US$5,489 million in 2023. Similar to EBITDA, EBIT rebounded significantly in 2024 to US$8,164 million and continued to rise to US$10,568 million in 2025. The difference between EBITDA and EBIT represents depreciation and amortization expense, which remained relatively stable as a percentage of EBITDA throughout the period.
- Net Income and EBT in Relation to EBIT and EBITDA
- Net income attributable to common shareowners mirrored the volatility seen in EBIT and EBITDA, increasing from US$3,864 million in 2021 to US$5,197 million in 2022, decreasing to US$3,195 million in 2023, and then increasing to US$4,774 million in 2024 and US$6,732 million in 2025. Earnings before tax (EBT) followed a similar pattern. The progression suggests that factors beyond operational profitability, such as tax rates or non-operating items, also significantly influenced net income.
Overall, the period demonstrates a recovery in profitability following a dip in 2023. The increasing trend in both EBIT and EBITDA, particularly in the final two years, suggests improved operational performance. However, the fluctuations in net income highlight the importance of considering factors beyond core operational results when assessing the company’s financial health.
Enterprise Value to EBITDA Ratio, Current
RTX Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| EV/EBITDA, Sector | |
| Capital Goods | |
| EV/EBITDA, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2025-12-31).
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
RTX Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Capital Goods | ||||||
| EV/EBITDA, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initial values decreased, followed by a period of increase, culminating in the highest ratio observed in the final year.
- Enterprise Value to EBITDA Trend
- In 2021, the EV/EBITDA ratio stood at 15.48. A slight decrease was noted in 2022, with the ratio falling to 14.92. The ratio then increased to 16.62 in 2023, and continued to rise to 16.80 in 2024. The most significant increase occurred between 2024 and 2025, with the ratio reaching 20.00.
Enterprise Value demonstrated an initial increase from 2021 to 2022, followed by a decrease in 2023. A substantial increase in Enterprise Value is apparent between 2023 and 2025, accelerating in the final year. EBITDA also generally increased over the period, though not at the same rate as Enterprise Value.
- Enterprise Value Analysis
- Enterprise Value increased from US$167,423 million in 2021 to US$170,615 million in 2022, representing a modest increase. A decrease to US$161,239 million was observed in 2023. However, a significant increase occurred in subsequent years, reaching US$210,519 million in 2024 and US$298,985 million in 2025.
- EBITDA Analysis
- EBITDA increased from US$10,818 million in 2021 to US$11,435 million in 2022. A decrease to US$9,700 million was recorded in 2023. Subsequent years saw increases, with EBITDA reaching US$12,528 million in 2024 and US$14,946 million in 2025. The rate of EBITDA increase was less pronounced than the increase in Enterprise Value, particularly in the final year.
The increasing EV/EBITDA ratio in the later years suggests that the Enterprise Value is growing at a faster rate than EBITDA. This could indicate increasing investor expectations, a higher premium placed on the company’s value, or potentially, a relative decline in operational profitability compared to its valuation.