Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Enterprise Value to EBITDA (EV/EBITDA) 

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

Apple Inc., EBITDA calculation

US$ in millions

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12 months ended: Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Net income 94,680  57,411  55,256  59,531  48,351  45,687 
Add: Income tax expense 14,527  9,680  10,481  13,372  15,738  15,685 
Earnings before tax (EBT) 109,207  67,091  65,737  72,903  64,089  61,372 
Add: Interest expense 2,645  2,873  3,576  3,240  2,323  1,456 
Earnings before interest and tax (EBIT) 111,852  69,964  69,313  76,143  66,412  62,828 
Add: Depreciation and amortization 11,284  11,056  12,547  10,903  10,157  10,505 
Earnings before interest, tax, depreciation and amortization (EBITDA) 123,136  81,020  81,860  87,046  76,569  73,333 

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

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. Apple Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Enterprise Value to EBITDA Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 2,713,316 
Earnings before interest, tax, depreciation and amortization (EBITDA) 123,136 
Valuation Ratio
EV/EBITDA 22.04
Benchmarks
EV/EBITDA, Competitors1
Cisco Systems Inc. 11.15
Enphase Energy Inc. 196.44
EV/EBITDA, Sector
Technology Hardware & Equipment 21.06
EV/EBITDA, Industry
Information Technology 20.42

Based on: 10-K (reporting date: 2021-09-25).

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

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

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Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 2,520,606  1,872,970  1,112,797  1,004,854  927,271  636,292 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 123,136  81,020  81,860  87,046  76,569  73,333 
Valuation Ratio
EV/EBITDA3 20.47 23.12 13.59 11.54 12.11 8.68
Benchmarks
EV/EBITDA, Competitors4
Cisco Systems Inc. 15.05 9.69 11.36 12.07 7.81 7.66
Enphase Energy Inc. 98.40 155.30 62.22 97.29
EV/EBITDA, Sector
Technology Hardware & Equipment 19.97 21.08 13.26 11.63 11.40
EV/EBITDA, Industry
Information Technology 20.58 20.86 15.58 13.18 13.33

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 2,520,606 ÷ 123,136 = 20.47

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. Apple Inc. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.