[1] What Is KMB EBITDA
EBITDA (short for Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure of profitability obtained by adding back Depreciation (D) & Amortization (A) to a company's operating income (also known as EBIT)
EBITDA is often used to measure a company's operating performance, as it does not include any accounting deductions (Depreciation and Amortization) or financial deductions (Interest and Taxes)EBITDA can be used to calculate P/EBITDA, which is a measure of market valuation per dollar of EBITDA
[2] What's The Unique Content Here?
Beyond the annual and quarterly EBITDA and EBITDA Margin data, we offer the ability to compare these metrics for Kimberly Clark Corporaton with those of its direct peers, industry, sector, and category peers. The idea is to give complete information on how to analyze and use the EBITDA metric in investment decisions
[3] What Are Direct And Category Peers?
Direct Peers include select companies that fully or partially compete in the same markets as Kimberly Clark Corporaton. These include Procter & Gamble, Unilever, Johnson & Johnson, Clorox, Colgate Palmolive Co..
Category Peers are companies that exhibit similarity vs. Kimberly Clark Corporaton when it comes to specific financial characteristics. For example, if Kimberly Clark Corporaton is growing fast (defined as average annual growth > 15%), then one of its category peers will be companies that lie in the same growth band
[4] Why Do You Compare With Category Peers?
Comparison with category peers offers additional insights to aid investment decisions. The financial characteristics used to categorize these peers are also some of the commonly used filters that investors use
[5] I Can Not Find All Peers Of KMB Here To Compare, What Should I Do?
We currently do not offer the ability to compare EBITDA and EBITDA Margin of specific tickers on demand. However, you can find a similar EBITDA comparison page for the desired tickers by:
Open All Companies Page --> Choose Specific Ticker To Open Specific Company Page --> Navigate To 'Financials' section
[6] What's The Purpose Of P/EBITDA Comparison In Context Of EBITDA?
Higher or improving EBITDA Margin, and resultant superior EBITDA growth usually command a higher market valuationThis market valuation metric is called Price-to-EBITDA Ratio or P/EBITDA, where EBITDA is adjusted to remove one-time line itemsComparing P/EBITDA among peers alongside EBITDA Margin and its trend, can yield potential mispricing opportunitiesFor example, if Apple is trading cheaper than its peers but its EBITDA Margin and trend are superior, then there is a chance that the market will correct this mispricing, and Apple's stock will gain relatively more
