Stock Analysis on Net
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 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Add: Income tax expense 9,680  10,481  13,372  15,738  15,685  19,121 
Earnings before tax (EBT) 67,091  65,737  72,903  64,089  61,372  72,515 
Add: Interest expense 2,873  3,576  3,240  2,323  1,456  733 
Earnings before interest and tax (EBIT) 69,964  69,313  76,143  66,412  62,828  73,248 
Add: Depreciation and amortization 11,056  12,547  10,903  10,157  10,505  11,257 
Earnings before interest, tax, depreciation and amortization (EBITDA) 81,020  81,860  87,046  76,569  73,333  84,505 

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

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.’s EBITDA decreased from 2018 to 2019 and from 2019 to 2020.

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) 2,448,617 
Earnings before interest, tax, depreciation and amortization (EBITDA) 81,020 
Valuation Ratio
EV/EBITDA 30.22
Benchmarks
EV/EBITDA, Competitors1
Cisco Systems Inc. 14.53
EV/EBITDA, Sector
Technology Hardware & Equipment 27.45
EV/EBITDA, Industry
Information Technology 27.79

Based on: 10-K (filing date: 2020-10-30).

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 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,872,309  1,112,797  1,004,854  927,271  636,292  687,886 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 81,020  81,860  87,046  76,569  73,333  84,505 
Valuation Ratio
EV/EBITDA3 23.11 13.59 11.54 12.11 8.68 8.14
Benchmarks
EV/EBITDA, Competitors4
Cisco Systems Inc. 9.69 11.36 12.07 7.81 7.66
EV/EBITDA, Sector
Technology Hardware & Equipment 20.85 13.20 11.63 11.39 8.50
EV/EBITDA, Industry
Information Technology 20.66 15.94 13.41 13.38 11.54

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,872,309 ÷ 81,020 = 23.11

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.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.