Stock Analysis on Net
Stock Analysis on Net
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Raytheon Technologies Corp. (NYSE:RTX)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Raytheon Technologies Corp., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (loss) attributable to common shareowners (3,519) 5,537  5,269  4,552  5,055 
Add: Net income attributable to noncontrolling interest 224  411  385  368  371 
Less: Net loss from discontinued operations (367) —  —  —  (10)
Add: Income tax expense 575  2,295  2,626  2,843  1,697 
Earnings before tax (EBT) (2,353) 8,243  8,280  7,763  7,133 
Add: Interest expense 1,408  1,773  1,225  1,017  1,161 
Earnings before interest and tax (EBIT) (945) 10,016  9,505  8,780  8,294 
Add: Depreciation and amortization 4,156  3,783  2,433  2,140  1,962 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,211  13,799  11,938  10,920  10,256 

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

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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

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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).

1 See details »

2 See details »

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.