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SAP AG (SAP) | Enterprise Value to EBITDA (EV/EBITDA)

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

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SAP AG, EBITDA calculation

USD $ in millions, translated from EUR €

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  12 months ended Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
chart Profit attributable to owners of parent
chart Add: Profit attributable to non-controlling interests
chart Add: Interest expense
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
chart Add: Depreciation and amortization
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
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. SAP AG's EBITDA declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level.

EV to EBITDA Ratio, Current

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SAP AG, current EV/EBITDA

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  SAP AG Technology
Selected Financial Data (USD $ in millions)
Enterprise value (EV)  
Earnings before interest, tax, depreciation and amortization (EBITDA)  
Ratio
EV/EBITDA

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

EV to EBITDA Ratio, Historical

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SAP AG, EV/EBITDA calculation

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    Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007
  Selected Financial Data (USD $ in millions, translated from EUR €)
chart Enterprise value (EV)
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
  EV/EBITDA, Comparison to Industry
chart SAP AG1
  Industry, Technology

2011 Calculations

1 EV/EBITDA = EV ÷ EBITDA
= ÷ =

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. SAP AG's EV/EBITDA ratio increased from 2009 to 2010 but then declined significantly from 2010 to 2011.

May 24, 2012

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