Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Airbnb Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Income (Loss)
- There is a marked improvement in net income over the period. The company experienced a significant loss of -4585 million USD in 2020, which substantially narrowed to -352 million USD in 2021. The trend reversed to profitability in 2022 with a net income of 1893 million USD. This positive momentum continued with a further increase to 4792 million USD in 2023, followed by a decline to 2648 million USD in 2024, which nonetheless remains a profitable position compared to the early years.
- Earnings Before Tax (EBT)
- EBT follows a similar trajectory to net income. The company recorded a loss of -4682 million USD in 2020, which reduced significantly to a loss of -300 million USD in 2021. Subsequently, EBT turned positive, increasing to 1989 million USD in 2022 and rising modestly to 2102 million USD in 2023. In 2024, the EBT surged to 3331 million USD, indicating strong earnings growth before tax relative to previous years.
- Earnings Before Interest and Tax (EBIT)
- EBIT shows a strong recovery from a negative value of -4510 million USD in 2020 to a positive 137 million USD in 2021. This upward trend continued steadily with EBIT advancing to 2013 million USD in 2022 and 2185 million USD in 2023. The growth accelerated in 2024, reaching 3355 million USD, reflecting improved operational profitability over time.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures also depict a significant turnaround. The company’s EBITDA was deeply negative at -4384 million USD in 2020 but turned positive with 276 million USD in 2021. Growth persisted with EBITDA increasing to 2094 million USD in 2022 and 2229 million USD in 2023. The largest increase occurred in 2024, when EBITDA rose sharply to 3420 million USD, highlighting improved cash earnings and operational efficiency.
Enterprise Value to EBITDA Ratio, Current
Airbnb Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 76,194) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,420) |
| Valuation Ratio | |
| EV/EBITDA | 22.28 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Booking Holdings Inc. | 20.27 |
| Chipotle Mexican Grill Inc. | 32.01 |
| McDonald’s Corp. | 17.91 |
| Starbucks Corp. | 16.71 |
| EV/EBITDA, Sector | |
| Consumer Services | 19.61 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 19.26 |
Based on: 10-K (reporting date: 2024-12-31).
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
Airbnb Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 80,315) | 90,604) | 76,659) | 93,363) | 120,985) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,420) | 2,229) | 2,094) | 276) | (4,384) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 23.48 | 40.65 | 36.61 | 338.63 | — | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Booking Holdings Inc. | 17.99 | 19.60 | 19.20 | 45.39 | 73.17 | |
| Chipotle Mexican Grill Inc. | 32.63 | 36.37 | 29.62 | 40.00 | 79.87 | |
| McDonald’s Corp. | 18.72 | 18.04 | 20.87 | 17.49 | 21.03 | |
| Starbucks Corp. | 17.33 | 17.75 | 19.88 | 18.77 | 38.99 | |
| EV/EBITDA, Sector | ||||||
| Consumer Services | 19.62 | 20.97 | 22.11 | 25.46 | 59.23 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 20.66 | 18.14 | 19.78 | 21.32 | 29.33 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 80,315 ÷ 3,420 = 23.48
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a downward trend from 120,985 million US dollars in 2020 to 76,659 million US dollars in 2022. This decrease was followed by a slight recovery to 90,604 million US dollars in 2023 but then declined again to 80,315 million US dollars in 2024. Overall, the EV at the end of 2024 remained significantly below the 2020 level, indicating a reduction in the market valuation or a change in the capital structure over the period.
- Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated a marked improvement over the five-year period. Starting with a negative value of -4,384 million US dollars in 2020, the figure turned positive in 2021 with 276 million US dollars and showed consistent growth thereafter, reaching 3,420 million US dollars by 2024. This positive trajectory reflects either operational improvements, cost management, or growth in revenue streams.
- EV/EBITDA Ratio
- This valuation multiple was not available for 2020 due to negative EBITDA, but it showed a strong decline in subsequent years, starting extremely high at 338.63 in 2021 and then decreasing to more moderate levels of 36.61 in 2022, 40.65 in 2023, and further to 23.48 in 2024. The declining ratio suggests an improved relationship between enterprise value and earnings, indicating a potentially more favorable valuation by the market or improved earnings generating capacity relative to the company’s valuation.
- Summary
- The data indicates a transition from significant operational losses to improving profitability over the five-year period. Enterprise value declined markedly in the earlier years but showed partial recovery in 2023 before declining again. EBITDA growth was strong and consistent from negative territory into robust positive values, positively influencing the valuation multiples. The decreasing EV/EBITDA ratio over time suggests a more efficient earnings generation relative to firm valuation, potentially improving investor confidence or reflecting market adjustments. Overall, the company demonstrated operational turnaround and improving financial health, despite fluctuations in enterprise valuation.