Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel LibreOffice Calc

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

Adobe Inc., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Net income 4,822  5,260  2,951  2,591  1,694  1,169 
Add: Income tax expense 883  (1,084) 253  203  444  266 
Earnings before tax (EBT) 5,705  4,176  3,205  2,794  2,138  1,435 
Add: Interest expense 113  116  157  89  74  70 
Earnings before interest and tax (EBIT) 5,818  4,292  3,362  2,883  2,212  1,506 
Add: Depreciation, amortization and accretion 788  757  737  346  326  332 
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,606  5,049  4,099  3,230  2,538  1,837 

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

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. EBITDA increased from 2019 to 2020 and from 2020 to 2021.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 170,774 
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,606 
Valuation Ratio
EV/EBITDA 25.85
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 17.52
Automatic Data Processing Inc. 13.89
International Business Machines Corp. 13.77
Intuit Inc. 36.53
Mastercard Inc. 27.32
Microsoft Corp. 22.10
Oracle Corp. 17.74
PayPal Holdings Inc. 8.24
Salesforce Inc. 33.23
ServiceNow Inc. 127.03
Visa Inc. 24.01
EV/EBITDA, Sector
Software & Services 21.18
EV/EBITDA, Industry
Information Technology 17.98

Based on: 10-K (reporting date: 2021-12-03).

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
Dec 3, 2021 Nov 27, 2020 Nov 29, 2019 Nov 30, 2018 Dec 1, 2017 Dec 2, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 234,133  217,408  168,707  120,364  93,316  51,840 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 6,606  5,049  4,099  3,230  2,538  1,837 
Valuation Ratio
EV/EBITDA3 35.44 43.06 41.16 37.27 36.77 28.22
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 21.47 15.93 15.60 13.79 15.98 11.03
Automatic Data Processing Inc. 14.05 8.32 12.32 11.88 7.32 2.28
International Business Machines Corp. 12.53 12.28 10.23 9.54 10.76
Intuit Inc. 51.96 35.70 34.27 31.25 21.97 19.58
Mastercard Inc. 31.84 38.83 32.61 28.36 24.94
Microsoft Corp. 24.59 21.74 17.21 15.67 15.00 13.73
Oracle Corp. 13.78 11.54 11.83 9.50 12.73
PayPal Holdings Inc. 19.34 43.02 27.91 24.59 22.50
Salesforce Inc. 33.82 49.43 55.96 84.53 75.36
ServiceNow Inc. 147.45 220.91 187.17 260.48 1,506.85
Visa Inc. 24.81 29.80 24.56 22.59 20.10 21.75
EV/EBITDA, Sector
Software & Services 24.20 23.98 19.68 17.30 16.71
EV/EBITDA, Industry
Information Technology 20.56 20.64 15.56 13.28 13.33

Based on: 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29), 10-K (reporting date: 2018-11-30), 10-K (reporting date: 2017-12-01), 10-K (reporting date: 2016-12-02).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 234,133 ÷ 6,606 = 35.44

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. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.