Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

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

Waste Management Inc., EBITDA calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income attributable to Waste Management, Inc.	1,816)	1,496)	1,670)	1,925)	1,949)
Add: Net income attributable to noncontrolling interest	1)	—)	1)	(2)	—)
Add: Income tax expense	532)	397)	434)	453)	242)
Earnings before tax (EBT)	2,349)	1,893)	2,105)	2,376)	2,191)
Add: Interest expense	375)	457)	464)	384)	368)
Earnings before interest and tax (EBIT)	2,724)	2,350)	2,569)	2,760)	2,559)
Add: Depreciation and amortization	1,999)	1,671)	1,574)	1,477)	1,376)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,723)	4,021)	4,143)	4,237)	3,935)

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).

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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.	Waste Management Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Enterprise Value to EBITDA Ratio, Current

Waste Management Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	72,442)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,723)
Valuation Ratio
EV/EBITDA	15.34
Benchmarks
EV/EBITDA, Industry
Industrials	18.00

Based on: 10-K (reporting date: 2021-12-31).

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

Waste Management Inc., 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	72,442)	60,043)	62,701)	51,852)	45,929)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	4,723)	4,021)	4,143)	4,237)	3,935)
Valuation Ratio
EV/EBITDA³	15.34	14.93	15.13	12.24	11.67
Benchmarks
EV/EBITDA, Industry
Industrials	15.95	26.00	17.09	—	—

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).

¹ See details »

² See details »

³ 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 72,442 ÷ 4,723 = 15.34

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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.	Waste Management Inc. EV/EBITDA ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Waste Management Inc. (NYSE:WM)

Enterprise Value to EBITDA (EV/EBITDA)

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

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical