Stock Analysis on Net
Stock Analysis on Net
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UnitedHealth Group Inc. (NYSE:UNH)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

UnitedHealth Group Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings attributable to UnitedHealth Group common shareholders 13,839  11,986  10,558  7,017  5,813 
Add: Net income attributable to noncontrolling interest 400  396  265  56  55 
Add: Income tax expense 3,742  3,562  3,200  4,790  4,363 
Earnings before tax (EBT) 17,981  15,944  14,023  11,863  10,231 
Add: Interest expense 1,704  1,400  1,186  1,067  790 
Earnings before interest and tax (EBIT) 19,685  17,344  15,209  12,930  11,021 
Add: Depreciation and amortization 2,720  2,428  2,245  2,055  1,693 
Earnings before interest, tax, depreciation and amortization (EBITDA) 22,405  19,772  17,454  14,985  12,714 

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

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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

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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).

1 See details »

2 See details »

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.