Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
UnitedHealth Group Inc., EBITDA calculation
US$ in millions
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
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. | UnitedHealth Group Inc.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019. |
Enterprise Value to EBITDA Ratio, Current
UnitedHealth Group Inc., current EV/EBITDA calculation, comparison to benchmarks
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 362,137 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 22,405 |
Valuation Ratio | |
EV/EBITDA | 16.16 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Becton, Dickinson & Co. | 24.91 |
Boston Scientific Corp. | 28.69 |
Danaher Corp. | 37.33 |
Edwards Lifesciences Corp. | 42.29 |
Intuitive Surgical Inc. | 53.18 |
Medtronic PLC | 22.35 |
Stryker Corp. | 27.24 |
Thermo Fisher Scientific Inc. | 31.30 |
EV/EBITDA, Sector | |
Health Care Equipment & Services | 23.69 |
EV/EBITDA, Industry | |
Health Care | 19.34 |
Based on: 10-K (filing date: 2020-02-14).
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
UnitedHealth Group Inc., historical EV/EBITDA calculation, comparison to benchmarks
Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 312,668 | 277,691 | 237,570 | 172,079 | 124,755 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 22,405 | 19,772 | 17,454 | 14,985 | 12,714 | |
Valuation Ratio | ||||||
EV/EBITDA3 | 13.96 | 14.04 | 13.61 | 11.48 | 9.81 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Becton, Dickinson & Co. | 21.93 | 22.08 | 21.58 | 17.76 | 21.50 | |
Boston Scientific Corp. | 30.18 | 24.31 | 21.10 | 31.56 | 71.28 | |
Danaher Corp. | 25.23 | 18.47 | 17.93 | 17.88 | 15.88 | |
Edwards Lifesciences Corp. | 37.05 | 42.10 | 24.39 | 22.48 | 25.34 | |
Intuitive Surgical Inc. | 37.53 | 40.47 | 37.53 | 23.10 | 21.93 | |
Medtronic PLC | 16.01 | 13.94 | 16.32 | 15.92 | 22.94 | |
Stryker Corp. | 24.38 | 21.99 | 20.29 | 18.37 | 15.99 | |
Thermo Fisher Scientific Inc. | 19.74 | 19.41 | 20.47 | 18.21 | 15.80 | |
EV/EBITDA, Sector | ||||||
Health Care Equipment & Services | 19.06 | 17.85 | 17.43 | 15.78 | 16.08 | |
EV/EBITDA, Industry | ||||||
Health Care | 16.46 | 15.84 | 15.22 | 13.93 | 13.15 |
Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-12), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-09).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 312,668 ÷ 22,405 = 13.96
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. | UnitedHealth Group Inc.’s EV/EBITDA ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019. |