Enterprise Value to EBITDA (EV/EBITDA)
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Stryker Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Net Earnings
- Net earnings exhibited significant volatility over the analyzed period. Starting at 1,020 million US dollars in 2017, there was a sharp increase to 3,553 million in 2018. However, this was followed by a decline to 2,083 million in 2019 and a further decrease to 1,599 million in 2020. In 2021, net earnings recovered somewhat, rising to 1,994 million US dollars, though not reaching the peak levels observed in 2018.
- Earnings Before Tax (EBT)
- EBT showed a general upward trend across the five years. The value rose from 2,063 million US dollars in 2017 to 2,356 million in 2018, with continued growth to 2,562 million in 2019. A decline occurred in 2020, reducing EBT to 1,954 million, followed by a rebound to 2,281 million in 2021. Overall, the fluctuations align with the variations seen in net earnings but appear less pronounced.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated a pattern similar to EBT, although values were consistently higher due to the exclusion of interest expense. EBIT increased from 2,310 million US dollars in 2017 to 2,620 million in 2018 and further to 2,849 million in 2019. There was a noticeable reduction in 2020 to 2,269 million, followed by a recovery in 2021 to 2,618 million. This indicates some operational resilience despite external pressures in 2020.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA values were the highest among the profit measures, reflecting earnings before non-cash expenses. EBITDA rose steadily from 2,952 million US dollars in 2017 to 3,343 million in 2018 and then to 3,627 million in 2019. A dip to 3,081 million occurred in 2020, but the figure increased again to 3,608 million in 2021, nearing the highest levels recorded in 2019. This trend suggests stable underlying earnings capacity with some impacts experienced during 2020.
Enterprise Value to EBITDA Ratio, Current
Stryker 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 | |
| Abbott Laboratories | |
| CVS Health Corp. | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | |
| EV/EBITDA, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2021-12-31).
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
Stryker Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Abbott Laboratories | ||||||
| CVS Health Corp. | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | ||||||
| EV/EBITDA, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value of the company shows a consistent upward trend from 2017 through 2021. It increased from approximately $59.9 billion in 2017 to about $104.5 billion in 2021, indicating substantial growth in the overall valuation of the company during this five-year period. The most significant increases appear between 2017-2019 and 2019-2020, with a slightly slower growth rate noted from 2020 to 2021.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA also experienced an overall increase from 2017 to 2021, rising from $2.95 billion to $3.61 billion. Despite this upward trend, there was a notable decline in 2020 where EBITDA fell to $3.08 billion from $3.63 billion in 2019, before rebounding in 2021. This dip in 2020 may suggest operational challenges or external factors impacting profitability during that year.
- EV/EBITDA Ratio
- The EV/EBITDA ratio, which measures valuation relative to operating earnings, exhibited an increasing trend from 2017 through 2020, moving from 20.29 to a peak of 33.52. This rising ratio suggests that the market valuation increased at a faster pace than EBITDA growth, potentially indicating higher expectations for future growth or a premium valuation. In 2021, the ratio decreased to 28.95, reflecting a relative easing of valuation levels compared to EBITDA, despite both EV and EBITDA increasing that year.
- Summary of Financial Trends
- Overall, the company's valuation expanded considerably over the five-year period. Earnings showed growth but with a temporary setback in 2020, which aligns with broader market or economic conditions during that year. The EV/EBITDA ratio's increase up to 2020 and subsequent decline in 2021 suggests fluctuating investor sentiment or reassessment of the company’s growth prospects. This dynamic highlights a complex interplay between market valuation growth and the trajectory of operating earnings.