Enterprise Value to EBITDA (EV/EBITDA)
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2008
- Debt to Equity since 2008
- Price to Earnings (P/E) since 2008
- Price to Operating Profit (P/OP) since 2008
- Price to Sales (P/S) since 2008
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Activision Blizzard Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
- Net Income
- Net income showed fluctuations over the five-year period. It initially declined from $1,813 million in 2018 to $1,503 million in 2019, recovering significantly to $2,197 million in 2020 and reaching a peak of $2,699 million in 2021. However, it experienced a sharp decline in 2022 to $1,513 million, nearly reverting to the 2019 level.
- Earnings Before Tax (EBT)
- EBT followed a trend similar to net income, decreasing from $1,877 million in 2018 to $1,633 million in 2019, then increasing substantially to $2,616 million in 2020 and $3,164 million in 2021. The year 2022 saw a notable reduction to $1,744 million, representing a significant drop compared to the previous two years.
- Earnings Before Interest and Tax (EBIT)
- EBIT also exhibited a pattern of initial decline followed by growth and subsequent decrease. It fell from $2,017 million in 2018 to $1,723 million in 2019, increased to $2,715 million in 2020, and further to $3,272 million in 2021, before declining to $1,852 million in 2022. The growth phase aligns with the period before 2022, indicating stronger operational performance during those years.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA displayed the most pronounced variability. After decreasing from $3,015 million in 2018 to $2,276 million in 2019, it rose significantly to $3,161 million in 2020 and $3,712 million in 2021. However, it then declined substantially to $2,171 million in 2022. This indicates an improvement in operational cash generation up to 2021, followed by a considerable reduction in 2022.
- Overall Trends and Insights
- Across all earnings metrics, there is a consistent pattern of decline in 2019, strong recovery and growth in 2020 and 2021, followed by a significant decrease in 2022. The peak values occur in 2021, suggesting that the company reached a high point in profitability and operational efficiency during that year. The steep reductions in 2022 across all measures signal potential challenges impacting profitability and operational performance post-2021. The large swings emphasize volatility in earnings capacity over the period assessed.
Enterprise Value to EBITDA Ratio, Current
Activision Blizzard Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Netflix Inc. | |
| Take-Two Interactive Software Inc. | |
| Walt Disney Co. | |
| EV/EBITDA, Sector | |
| Media & Entertainment | |
| EV/EBITDA, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2022-12-31).
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
Activision Blizzard Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | ||||||
| EV/EBITDA, Industry | ||||||
| Communication Services | ||||||
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a significant increase from 2018 through 2020, rising from 30,634 million USD to a peak of 69,660 million USD. However, in 2021 and 2022, it declined notably to 56,646 million USD and then further to 52,063 million USD, indicating a reversal from the earlier growth trend.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA displayed variability over the analyzed period. After a decrease from 3,015 million USD in 2018 to 2,276 million USD in 2019, it rebounded and increased to 3,161 million USD in 2020 and further to 3,712 million USD in 2021, marking an upward trajectory in earnings capacity. In 2022, EBITDA sharply declined to 2,171 million USD, reflecting a reduction in operating profitability or cash flow generation.
- EV/EBITDA Ratio
- The EV/EBITDA multiple demonstrated considerable fluctuation. Starting at 10.16 in 2018, it jumped sharply to 18.34 in 2019 and further to 22.04 in 2020, suggesting increased market valuation relative to earnings or potentially compressed earnings. In 2021, the ratio decreased to 15.26, aligned with a recovery in EBITDA despite a decrease in enterprise value. Nevertheless, the ratio rose again to 23.98 in 2022, driven by declining EBITDA and decreasing EV, indicating higher valuation multiples possibly reflecting market optimism or other valuation factors despite weaker operating earnings.