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

International Business Machines Corp., EBITDA calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to IBM	7,502)	1,639)	5,743)	5,590)	9,431)
Add: Net income attributable to noncontrolling interest	16)	20)	19)	22)	25)
Less: Income (loss) from discontinued operations, net of tax	(12)	(143)	1,031)	89)	(4)
Add: Income tax expense	1,176)	(626)	125)	(864)	731)
Earnings before tax (EBT)	8,706)	1,176)	4,856)	4,659)	10,191)
Add: Interest expense	1,607)	1,216)	1,155)	1,288)	1,344)
Earnings before interest and tax (EBIT)	10,313)	2,392)	6,011)	5,947)	11,535)
Add: Depreciation	2,109)	2,407)	3,888)	4,227)	4,209)
Add: Amortization of capitalized software and acquired intangible assets	2,287)	2,395)	2,529)	2,468)	1,850)
Earnings before interest, tax, depreciation and amortization (EBITDA)	14,709)	7,194)	12,428)	12,642)	17,594)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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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.	International Business Machines Corp. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

International Business Machines Corp., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	209,527)
Earnings before interest, tax, depreciation and amortization (EBITDA)	14,709)
Valuation Ratio
EV/EBITDA	14.24
Benchmarks
EV/EBITDA, Competitors¹
Accenture PLC	17.99
Adobe Inc.	26.69
Intuit Inc.	42.74
Microsoft Corp.	28.12
Oracle Corp.	21.14
Palo Alto Networks Inc.	103.27
Salesforce Inc.	28.37
ServiceNow Inc.	91.93
Synopsys Inc.	50.13
EV/EBITDA, Sector
Software & Services	27.74
EV/EBITDA, Industry
Information Technology	28.58

Based on: 10-K (reporting date: 2023-12-31).

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.

International Business Machines Corp., historical EV/EBITDA calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	211,965)	159,474)	155,684)	155,259)	179,930)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	14,709)	7,194)	12,428)	12,642)	17,594)
Valuation Ratio
EV/EBITDA³	14.41	22.17	12.53	12.28	10.23
Benchmarks
EV/EBITDA, Competitors⁴
Accenture PLC	17.26	14.25	23.31	17.46	15.60
Adobe Inc.	34.07	22.32	35.44	43.06	41.16
Intuit Inc.	38.71	36.22	51.96	35.70	34.27
Microsoft Corp.	22.92	20.17	24.59	21.74	17.21
Oracle Corp.	21.80	17.12	13.78	11.54	11.83
Palo Alto Networks Inc.	85.08	515.16	—	349.95	117.16
Salesforce Inc.	38.42	38.91	33.92	49.78	56.71
ServiceNow Inc.	96.48	104.30	147.45	220.91	187.17
Synopsys Inc.	54.59	36.73	53.43	42.24	26.98
EV/EBITDA, Sector
Software & Services	24.33	21.63	24.66	22.06	17.87
EV/EBITDA, Industry
Information Technology	23.37	18.28	20.37	19.53	14.42

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 211,965 ÷ 14,709 = 14.41

⁴ Click competitor name to see calculations.

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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.	International Business Machines Corp. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

International Business Machines Corp. (NYSE:IBM)

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