Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Adobe Inc. (NASDAQ:ADBE)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Adobe Inc., EBITDA calculation

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Net income 2,951,458  2,590,774  1,693,954  1,168,782  629,551  268,395 
Add: Income tax expense 253,283  203,102  443,687  266,356  244,230  92,981 
Earnings before tax (EBT) 3,204,741  2,793,876  2,137,641  1,435,138  873,781  361,376 
Add: Interest expense 157,214  89,242  74,402  70,442  64,184  59,732 
Earnings before interest and tax (EBIT) 3,361,955  2,883,118  2,212,043  1,505,580  937,965  421,108 
Add: Depreciation, amortization and accretion 736,669  346,492  325,997  331,535  339,473  313,590 
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,098,624  3,229,610  2,538,040  1,837,115  1,277,438  734,698 

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

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. Adobe Inc.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Adobe Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 219,494,478 
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,098,624 
Valuation Ratio
EV/EBITDA 53.55
Benchmarks
EV/EBITDA, Competitors1
Alphabet Inc. 17.59
Autodesk Inc. 112.80
Facebook Inc. 20.92
International Business Machines Corp. 9.01
Intuit Inc. 37.07
Microsoft Corp. 26.74
Oracle Corp. 11.81
salesforce.com inc. 58.94
ServiceNow Inc. 227.15
EV/EBITDA, Sector
Software & Computer Services 22.08
EV/EBITDA, Industry
Technology 19.05

Based on: 10-K (filing date: 2020-01-21).

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

Adobe Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016 Nov 27, 2015 Nov 28, 2014
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 168,707,132  120,364,301  93,315,543  51,840,196  42,360,253  33,399,296 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,098,624  3,229,610  2,538,040  1,837,115  1,277,438  734,698 
Valuation Ratio
EV/EBITDA3 41.16 37.27 36.77 28.22 33.16 45.46
Benchmarks
EV/EBITDA, Competitors4
Alphabet Inc. 17.07 15.69 19.10 15.51 16.21 —
Autodesk Inc. 335.51 — — 75.90 52.55 —
Facebook Inc. 17.76 14.64 21.98 23.48 35.80 —
International Business Machines Corp. 10.23 9.54 10.76 11.72 7.85 —
Intuit Inc. 34.27 31.25 21.97 19.58 22.81 14.64
Microsoft Corp. 17.10 15.58 14.93 13.70 12.37 8.70
Oracle Corp. 11.83 9.50 12.73 9.86 9.80 —
salesforce.com inc. 55.87 84.25 74.85 68.47 121.75 —
ServiceNow Inc. 187.17 260.48 1,506.85 — — —
EV/EBITDA, Sector
Software & Computer Services 17.73 15.68 17.79 15.60 14.87 —
EV/EBITDA, Industry
Technology 15.02 12.97 14.06 12.25 10.67 —

Based on: 10-K (filing date: 2020-01-21), 10-K (filing date: 2019-01-25), 10-K (filing date: 2018-01-22), 10-K (filing date: 2017-01-20), 10-K (filing date: 2016-01-19), 10-K (filing date: 2015-01-20).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 168,707,132 ÷ 4,098,624 = 41.16

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. Adobe Inc.’s EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019.