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 (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), 10-K (reporting date: 2016-12-31).
| 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. EBITDA increased from 2018 to 2019 and from 2019 to 2020. |
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) | 456,801 |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 25,296 |
| Valuation Ratio | |
| EV/EBITDA | 18.06 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 26.50 |
| Anthem Inc. | 11.80 |
| Becton, Dickinson & Co. | 18.13 |
| Bristol-Myers Squibb Co. | 35.70 |
| CVS Health Corp. | 10.99 |
| Danaher Corp. | 33.44 |
| Edwards Lifesciences Corp. | 66.87 |
| HCA Healthcare Inc. | 10.84 |
| Intuitive Surgical Inc. | 61.49 |
| Medtronic PLC | 20.97 |
| Stryker Corp. | 34.74 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 20.36 |
| EV/EBITDA, Industry | |
| Health Care | 21.00 |
Based on: 10-K (reporting date: 2020-12-31).
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
UnitedHealth Group Inc., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | 338,798 | 309,592 | 274,659 | 234,469 | 168,974 | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 25,296 | 22,405 | 19,772 | 17,454 | 14,985 | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 13.39 | 13.82 | 13.89 | 13.43 | 11.28 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 25.99 | 21.70 | 21.41 | 20.08 | 25.22 | |
| Anthem Inc. | 7.57 | 9.05 | 11.15 | 9.78 | 5.85 | |
| Becton, Dickinson & Co. | 22.08 | 21.93 | 22.08 | 21.58 | 17.76 | |
| Bristol-Myers Squibb Co. | 34.35 | 23.84 | 11.97 | 17.25 | 14.26 | |
| CVS Health Corp. | 8.56 | 9.43 | 21.09 | 8.13 | 8.48 | |
| Danaher Corp. | 26.68 | 25.23 | 18.47 | 17.93 | 17.88 | |
| Edwards Lifesciences Corp. | 51.87 | 37.05 | 42.10 | 24.39 | 22.48 | |
| HCA Healthcare Inc. | 9.43 | 8.84 | 8.86 | 8.46 | 7.57 | |
| Intuitive Surgical Inc. | 59.12 | 37.53 | 40.47 | 37.53 | 23.10 | |
| Medtronic PLC | 17.92 | 16.01 | 13.94 | 16.32 | 15.92 | |
| Stryker Corp. | 33.52 | 24.38 | 21.99 | 20.29 | 18.37 | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 17.18 | 15.81 | 15.94 | 14.32 | 12.51 | |
| EV/EBITDA, Industry | ||||||
| Health Care | 18.02 | 14.98 | 15.13 | 13.95 | 12.63 | |
Based on: 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), 10-K (reporting date: 2016-12-31).
3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 338,798 ÷ 25,296 = 13.39
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. EV/EBITDA ratio decreased from 2018 to 2019 and from 2019 to 2020. |