Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Meta Platforms Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial performance, as indicated by earnings metrics, demonstrates a period of fluctuation followed by substantial growth. A review of earnings from 2021 to 2025 reveals a distinct pattern in profitability before accounting for non-cash expenses and financing costs.
- Overall Trend
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) experienced a decline from 2021 to 2022, followed by a period of recovery and accelerated growth through 2025. This suggests potential operational challenges in 2022 that were subsequently addressed, leading to improved performance in later years.
- EBITDA Performance
- EBITDA stood at US$55,266 million in 2021. A significant decrease was observed in 2022, with EBITDA falling to US$37,681 million. However, a strong recovery occurred in 2023, reaching US$59,052 million. This upward trajectory continued, with EBITDA increasing to US$86,876 million in 2024 and further to US$105,713 million in 2025. This represents a substantial increase over the five-year period.
- Relationship to Other Earnings Metrics
- The trend in EBITDA mirrors the trends in Net Income, Earnings Before Tax (EBT), and Earnings Before Interest and Tax (EBIT). All metrics experienced a decline in 2022 and subsequent recovery and growth. The consistency in these trends suggests that the factors influencing overall profitability are impacting all levels of earnings before net income. The difference between EBIT and EBITDA consistently represents depreciation and amortization expenses, which remained relatively stable as a percentage of EBIT throughout the period.
- Growth Rates
- The most substantial year-over-year growth in EBITDA occurred between 2023 and 2024 (approximately 47.0%) and between 2024 and 2025 (approximately 21.8%). The decline between 2021 and 2022 was approximately 31.8%. These growth rates indicate increasing operational efficiency and/or revenue generation in the later years of the observed period.
In conclusion, the earnings metrics indicate a period of volatility followed by robust growth. The substantial increase in EBITDA from 2022 to 2025 suggests successful strategic initiatives and/or favorable market conditions.
Enterprise Value to EBITDA Ratio, Current
Meta Platforms Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 1,673,669) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 105,713) |
| Valuation Ratio | |
| EV/EBITDA | 15.83 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 21.76 |
| Comcast Corp. | 4.33 |
| Netflix Inc. | 11.46 |
| Trade Desk Inc. | 18.06 |
| Walt Disney Co. | 11.87 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 21.13 |
| EV/EBITDA, Industry | |
| Communication Services | 17.30 |
Based on: 10-K (reporting date: 2025-12-31).
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
Meta Platforms Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 1,845,932) | 1,692,344) | 1,164,614) | 459,285) | 599,752) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 105,713) | 86,876) | 59,052) | 37,681) | 55,266) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 17.46 | 19.48 | 19.72 | 12.19 | 10.85 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | 21.76 | 16.81 | 17.01 | 14.66 | 18.08 | |
| Comcast Corp. | 4.24 | 5.84 | 7.10 | 9.60 | 8.45 | |
| Netflix Inc. | 12.20 | 16.03 | 11.85 | 8.40 | 9.51 | |
| Trade Desk Inc. | — | 56.73 | 101.80 | 167.34 | 231.53 | |
| Walt Disney Co. | 12.19 | 16.57 | 17.34 | 17.80 | 34.53 | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | — | 16.21 | 15.70 | 13.07 | 14.78 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | — | 13.81 | 13.01 | 11.85 | 11.67 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,845,932 ÷ 105,713 = 17.46
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the five-year period. Initial values decreased, followed by a substantial increase, and then a stabilization with a slight decline.
- Enterprise Value to EBITDA Trend
- In 2021, the EV/EBITDA ratio stood at 10.85. This increased to 12.19 in 2022, indicating a potentially less favorable valuation relative to earnings. A significant jump occurred in 2023, with the ratio reaching 19.72. This suggests a considerable increase in the enterprise value relative to EBITDA. The ratio remained elevated in 2024 at 19.48, before decreasing slightly to 17.46 in 2025.
Enterprise Value demonstrated an initial decrease from 599,752 in 2021 to 459,285 in 2022. Subsequently, it experienced substantial growth, reaching 1,164,614 in 2023, and continued to rise to 1,692,344 in 2024, before a more moderate increase to 1,845,932 in 2025.
- EBITDA Trend
- EBITDA decreased from 55,266 in 2021 to 37,681 in 2022. A recovery was observed in 2023, with EBITDA increasing to 59,052. Continued growth was evident in subsequent years, reaching 86,876 in 2024 and 105,713 in 2025. This upward trend in EBITDA partially offset the increases in Enterprise Value, influencing the EV/EBITDA ratio.
The combination of fluctuating Enterprise Value and increasing EBITDA resulted in the observed EV/EBITDA pattern. The initial increase in the ratio from 2021 to 2023 suggests the market was placing a higher premium on the company’s value relative to its operating earnings. The stabilization and slight decrease in the ratio from 2023 to 2025 may indicate a re-evaluation of this premium as EBITDA grew.