Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
AppLovin Corp., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial performance, as indicated by earnings metrics, demonstrates a significant trajectory over the five-year period. Initially, a substantial decline in profitability is observed, followed by a period of robust recovery and expansion. The progression of these metrics suggests evolving operational efficiency and market positioning.
- EBITDA Trend
- Earnings before interest, tax, depreciation, and amortization exhibited a fluctuating pattern. A decrease from US$580,544 thousand in 2021 to US$513,770 thousand in 2022 is noted. However, a strong upward trend commenced in 2023, with EBITDA reaching US$1,145,243 thousand, and continuing to US$2,342,945 thousand in 2024. This growth accelerated further in 2025, culminating in US$4,354,704 thousand. This indicates improving operational profitability and potentially effective cost management as the period progresses.
- Relationship between EBITDA and Other Earnings Metrics
- The relationship between EBITDA and other earnings metrics reveals a consistent pattern. While net income experienced a considerable loss in 2022, EBITDA remained positive, suggesting that core operational activities continued to generate cash flow despite the net loss. The subsequent recovery in net income and earnings before tax in 2023 and beyond aligns with the increasing EBITDA figures, indicating a strong correlation between operational performance and overall profitability.
- EBIT Growth
- Earnings before interest and tax (EBIT) mirrored the EBITDA trend, experiencing a decline in 2022 before a substantial increase in subsequent years. From a loss of US$33,314 thousand in 2022, EBIT rose to US$656,235 thousand in 2023, US$1,894,265 thousand in 2024, and US$4,159,926 thousand in 2025. This growth suggests improved efficiency in managing operating expenses relative to revenue.
- Earnings Before Tax (EBT) and Net Income
- Earnings before tax followed a similar pattern to EBITDA and EBIT, with a significant loss in 2022 followed by substantial growth. Net income attributable to the company also reflects this trend, moving from a loss of US$192,746 thousand in 2022 to a profit of US$3,333,751 thousand in 2025. The increasing difference between EBT and net income suggests a changing tax burden or the impact of other non-operating items.
In summary, the progression of these earnings metrics indicates a period of initial challenge followed by substantial improvement and growth. The consistent upward trend in EBITDA, EBIT, and net income suggests a strengthening financial position and increasing operational efficiency.
AI Ask an analyst for more
Enterprise Value to EBITDA Ratio, Current
AppLovin Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 158,835,426) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,354,704) |
| Valuation Ratio | |
| EV/EBITDA | 36.47 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 5.83 |
| Adobe Inc. | 7.85 |
| Cadence Design Systems Inc. | 57.13 |
| CrowdStrike Holdings Inc. | 917.91 |
| Datadog Inc. | 388.51 |
| International Business Machines Corp. | 16.40 |
| Intuit Inc. | 12.21 |
| Microsoft Corp. | 17.00 |
| Oracle Corp. | 24.42 |
| Palantir Technologies Inc. | 165.96 |
| Palo Alto Networks Inc. | 118.69 |
| Salesforce Inc. | 9.53 |
| ServiceNow Inc. | 30.15 |
| Synopsys Inc. | 39.79 |
| Workday Inc. | 17.32 |
| EV/EBITDA, Sector | |
| Software & Services | 20.06 |
| EV/EBITDA, Industry | |
| Information Technology | 35.28 |
Based on: 10-K (reporting date: 2025-12-31).
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
AppLovin Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 140,107,080) | 111,877,014) | 22,957,013) | 7,279,721) | 17,446,296) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,354,704) | 2,342,945) | 1,145,243) | 513,770) | 580,544) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 32.17 | 47.75 | 20.05 | 14.17 | 30.05 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | 11.82 | 19.87 | 17.26 | 14.25 | 23.31 | |
| Adobe Inc. | 12.68 | 22.06 | 34.07 | 22.32 | 35.44 | |
| Cadence Design Systems Inc. | 42.96 | 42.25 | 55.61 | 42.11 | 39.61 | |
| CrowdStrike Holdings Inc. | 247.69 | 262.20 | — | — | — | |
| Datadog Inc. | 203.50 | 153.02 | 370.63 | 1,785.61 | 1,949.67 | |
| International Business Machines Corp. | 15.14 | 22.90 | 14.41 | 22.17 | 12.53 | |
| Intuit Inc. | 31.89 | 38.55 | 38.71 | 36.22 | 51.96 | |
| Microsoft Corp. | 23.79 | 23.66 | 22.92 | 20.17 | 24.59 | |
| Oracle Corp. | 28.10 | 21.81 | 21.80 | 17.12 | 13.78 | |
| Palantir Technologies Inc. | 184.77 | 551.39 | 175.93 | — | — | |
| Palo Alto Networks Inc. | 64.12 | 84.17 | 85.08 | 515.19 | — | |
| Salesforce Inc. | 24.64 | 31.64 | 38.31 | 38.88 | 33.83 | |
| ServiceNow Inc. | 38.82 | 87.89 | 96.48 | 104.31 | 147.45 | |
| Synopsys Inc. | 41.03 | 39.17 | 54.59 | 36.73 | 53.43 | |
| Workday Inc. | 55.27 | 86.37 | 216.44 | 147.90 | 670.04 | |
| EV/EBITDA, Sector | ||||||
| Software & Services | 25.34 | 27.48 | 25.41 | 22.68 | 26.04 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 27.47 | 27.76 | 23.62 | 18.32 | 20.57 | |
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 140,107,080 ÷ 4,354,704 = 32.17
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits considerable fluctuation over the observed period. Initial values indicate a substantial decrease followed by increases and then a stabilization. Enterprise Value demonstrates a significant decline from 2021 to 2022, followed by substantial growth through 2025. EBITDA also shows an increasing trend, though not as dramatic as the Enterprise Value increase.
- EV/EBITDA Trend
- The EV/EBITDA ratio began at 30.05 in 2021. A marked decrease was observed in 2022, falling to 14.17. The ratio then increased to 20.05 in 2023, before rising sharply to 47.75 in 2024. Finally, the ratio decreased to 32.17 in 2025, suggesting a potential stabilization after the significant increase.
- Enterprise Value (EV) Analysis
- Enterprise Value experienced a substantial reduction from US$17,446,296 thousand in 2021 to US$7,279,721 thousand in 2022. Subsequently, a strong upward trend is evident, with EV reaching US$22,957,013 thousand in 2023, US$111,877,014 thousand in 2024, and further increasing to US$140,107,080 thousand in 2025.
- EBITDA Analysis
- EBITDA demonstrated a slight decrease from US$580,544 thousand in 2021 to US$513,770 thousand in 2022. From 2022, EBITDA consistently increased, reaching US$1,145,243 thousand in 2023, US$2,342,945 thousand in 2024, and US$4,354,704 thousand in 2025. This indicates improving operational profitability over the period.
The significant increase in Enterprise Value relative to EBITDA in 2024 resulted in the peak EV/EBITDA ratio. The subsequent decrease in the ratio in 2025, despite continued growth in both EV and EBITDA, suggests that EBITDA growth is outpacing the growth in Enterprise Value, potentially indicating improved valuation metrics.
AI Ask an analyst for more