Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
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. | Nike Inc. EBITDA increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 140,047) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,351) |
Valuation Ratio | |
EV/EBITDA | 19.05 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
lululemon athletica inc. | 16.15 |
EV/EBITDA, Sector | |
Consumer Durables & Apparel | 20.32 |
EV/EBITDA, Industry | |
Consumer Discretionary | 17.76 |
Based on: 10-K (reporting date: 2023-05-31).
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
May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 162,776) | 171,515) | 248,616) | 154,410) | 134,665) | 122,064) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,351) | 7,790) | 7,754) | 4,157) | 5,652) | 5,223) | |
Valuation Ratio | |||||||
EV/EBITDA3 | 22.14 | 22.02 | 32.06 | 37.14 | 23.83 | 23.37 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
lululemon athletica inc. | 24.36 | 27.43 | 39.99 | 23.64 | 21.89 | — | |
EV/EBITDA, Sector | |||||||
Consumer Durables & Apparel | 22.55 | 22.92 | 32.97 | 34.40 | 23.58 | — | |
EV/EBITDA, Industry | |||||||
Consumer Discretionary | 17.81 | 20.07 | 22.01 | 30.96 | 17.37 | — |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 162,776 ÷ 7,351 = 22.14
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. | Nike Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |