Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Alphabet 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 Trends
- Net income exhibited a notable increase from 40,269 million US$ in 2020 to 76,033 million US$ in 2021, nearly doubling within one year. This was followed by a decline in 2022 to 59,972 million US$, indicating a significant drop after the peak. The figure rebounded in 2023 to 73,795 million US$, approaching the previous high, and further rose sharply in 2024 to 100,118 million US$, marking the highest value in the observed period.
- Earnings Before Tax (EBT) Patterns
- EBT closely mirrors the net income trend, rising from 48,082 million US$ in 2020 to 90,734 million US$ in 2021. A decrease followed in 2022 to 71,328 million US$, then growth resumed with 85,717 million US$ in 2023, culminating in a significant increase to 119,815 million US$ in 2024, representing the peak over the five years.
- Earnings Before Interest and Tax (EBIT) Development
- EBIT followed an almost identical trajectory to EBT, starting at 48,217 million US$ in 2020 and rising to 91,080 million US$ in 2021. It declined in 2022 to 71,685 million US$, increased again in 2023 to 86,025 million US$, and escalated substantially in 2024 to 120,083 million US$, the highest figure recorded during the timeframe.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Evolution
- EBITDA also showed strong growth from 61,122 million US$ in 2020 to 101,353 million US$ in 2021. There was a decline in 2022 to 85,160 million US$, followed by an increase to 97,971 million US$ in 2023. The upward trend continued substantially in 2024 with EBITDA reaching 135,394 million US$, indicating robust operational performance improvements.
- Summary of Financial Performance Trends
- Across all profitability metrics presented, the data reflects a strong upward trend interrupted by a dip during 2022. The rebound starting in 2023 and continuing into 2024 suggests recovery and further growth momentum. The increase in EBITDA outpaces the growth in net income and EBIT, implying enhanced operational efficiency or improvements in non-cash adjustments. The consistent pattern across EBT, EBIT, and EBITDA indicates coherence in the company’s earnings quality and operational results over the period under review.
Enterprise Value to EBITDA Ratio, Current
Alphabet Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| 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: 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
Alphabet 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 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| 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: 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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trend
- The enterprise value of the company shows a fluctuating pattern over the analyzed period. Starting at approximately 1.27 trillion US dollars at the end of 2020, it rose significantly to around 1.83 trillion by the end of 2021. However, the value decreased sharply in 2022 to approximately 1.25 trillion, before rising again in the subsequent years, reaching its highest level of about 2.28 trillion by the end of 2024. This pattern suggests periods of market adjustment or valuation reassessment followed by renewed investor confidence or operational improvements.
- EBITDA Performance
- The EBITDA exhibits an overall upward trend with some variability. It increased substantially from 61.1 billion US dollars in 2020 to over 101 billion in 2021. This was followed by a decline to approximately 85.2 billion in 2022, then it recovered in the following years, reaching a peak of 135.4 billion in 2024. The fluctuations indicate varying operational profitability and possibly changes in cost structure or revenue composition over time.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA multiple decreased from 20.84 in 2020 to 14.66 in 2022, suggesting a relative valuation contraction possibly due to the slower growth or reduced investor sentiment during that period. Subsequently, the ratio increased to 17.01 in 2023 and slightly decreased to 16.81 in 2024, indicating a stabilization of valuation multiples as the company’s earnings and enterprise value both improved. This behavior could reflect market reassessment aligning enterprise value with operational earnings more closely.
- Overall Insights
- The data reflects a company experiencing significant volatility in both valuation and operational profitability. The initial sharp growth in enterprise value and EBITDA was followed by a challenging year in 2022 before recovery and expansion in later periods. The EV/EBITDA ratio indicates valuation multiples retracted during the downturn but stabilized during the recovery phase, suggesting cautious investor optimism. These patterns highlight the cyclical nature of business performance and market perception during the covered timeframe.