Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Union Pacific 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 performance indicators demonstrate a generally positive trajectory over the five-year period, although with some fluctuations. Net income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibit increases between 2021 and 2025, but not consistently year-over-year.
- Overall Trend
- A general upward trend is observed across all reported metrics. However, 2023 shows a slight decline in Net income, EBT, and EBIT compared to the preceding year, before resuming growth in 2024 and 2025. EBITDA mirrors this pattern, experiencing a decrease in 2023 before increasing in subsequent years.
- EBITDA Performance
- EBITDA increased from US$11,843 million in 2021 to US$12,940 million in 2025, representing a cumulative growth of approximately 9.2%. The largest year-over-year increase in EBITDA occurred between 2021 and 2022 (US$746 million), while the smallest increase was between 2024 and 2025 (US$479 million). The dip in 2023, from US$12,589 million to US$11,891 million, suggests potential operational or macroeconomic headwinds during that period.
- Relationship between Metrics
- EBITDA consistently exceeds EBIT, EBT, and Net income, as expected, due to the exclusion of non-cash expenses like depreciation and amortization, as well as interest and taxes. The difference between EBIT and EBITDA remains relatively stable across the period, indicating consistent depreciation and amortization policies. The progression from EBITDA to Net income demonstrates the impact of interest and tax expenses on overall profitability.
- Growth Rates
- While absolute values increased overall, the rate of growth appears to be decelerating. The percentage increase from 2021 to 2022 was higher than the percentage increase from 2024 to 2025 for all metrics, suggesting a potential slowing of momentum. This warrants further investigation into the underlying drivers of revenue and cost structures.
In conclusion, the financial indicators suggest a generally healthy and growing business, but the slight dip in 2023 and the decelerating growth rates in later years indicate a need for continued monitoring and analysis to understand the factors influencing performance.
Enterprise Value to EBITDA Ratio, Current
Union Pacific Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| FedEx Corp. | |
| Uber Technologies Inc. | |
| United Airlines Holdings Inc. | |
| United Parcel Service Inc. | |
| EV/EBITDA, Sector | |
| Transportation | |
| 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
Union Pacific 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 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Transportation | ||||||
| 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. Initially, a decrease was observed, followed by a period of relative stability and a slight downward trend towards the end of the analyzed timeframe.
- Enterprise Value to EBITDA Trend
- In 2021, the EV/EBITDA ratio stood at 15.46. A notable decline occurred in 2022, with the ratio decreasing to 12.56. The ratio then increased in 2023, returning to 15.44, mirroring the 2021 level. Subsequently, a modest decrease was recorded in 2024, with the ratio falling to 14.16. This downward trend continued into 2025, albeit at a slower pace, resulting in a ratio of 13.95.
Enterprise Value demonstrated an initial decrease from 2021 to 2022, followed by a recovery in 2023. Values then decreased slightly in 2024 before stabilizing in 2025. EBITDA showed a consistent upward trend, with minor fluctuations, throughout the period.
- Enterprise Value Analysis
- Enterprise Value decreased from US$183,147 million in 2021 to US$158,093 million in 2022, representing a significant reduction. It then increased to US$183,633 million in 2023, before decreasing to US$176,462 million in 2024 and stabilizing at US$180,451 million in 2025.
- EBITDA Analysis
- EBITDA increased from US$11,843 million in 2021 to US$12,589 million in 2022. It experienced a slight decrease to US$11,891 million in 2023, then increased to US$12,461 million in 2024, and continued to rise to US$12,940 million in 2025, indicating a general upward trajectory.
The interplay between Enterprise Value and EBITDA suggests that the initial decrease in the EV/EBITDA ratio in 2022 was likely driven by a larger decrease in Enterprise Value than the increase in EBITDA. The subsequent increase in 2023 was likely due to a larger increase in Enterprise Value than the decrease in EBITDA. The slight downward trend observed in 2024 and 2025 appears to be a result of EBITDA growth outpacing Enterprise Value changes.