Enterprise Value to EBITDA (EV/EBITDA)
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Booking Holdings Inc. pages available for free this week:
- Statement of Comprehensive Income
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Booking Holdings Inc., EBITDA calculation
US$ in millions
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 information reveals a consistent upward trend in profitability metrics from 2021 through 2024, followed by a slight decrease in 2025. Each profitability measure – Net Income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) – demonstrates this pattern. The rate of increase decelerates in the final period examined.
- EBITDA Trend
- EBITDA increased from US$2,220 million in 2021 to US$9,178 million in 2024, representing substantial growth over the four-year period. This indicates a strong ability to generate cash from core operations. However, EBITDA experienced a modest decline to US$9,072 million in 2025, suggesting a potential stabilization or slight contraction in operational profitability.
- Relationship between Profitability Metrics
- The difference between EBITDA and EBIT remained relatively stable across the observed period, indicating consistent depreciation and amortization expenses. The progression from EBIT to EBT shows a consistent increase in interest expense as profitability grows. The difference between EBT and Net Income reflects the impact of income taxes, which also increased alongside rising profits.
- Growth Rates
- The largest percentage increase in EBITDA occurred between 2021 and 2022, with a growth of approximately 114.6%. Subsequent years saw continued growth, but at decreasing rates. The growth from 2024 to 2025 was minimal, approximately a 1.1% decrease, signaling a potential shift in the growth trajectory.
Overall, the period from 2021 to 2024 demonstrates a period of robust profitability growth. The slight decrease in EBITDA in 2025 warrants further investigation to determine if this represents a temporary fluctuation or the beginning of a more sustained trend.
Enterprise Value to EBITDA Ratio, Current
Booking Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | |
| Chipotle Mexican Grill Inc. | |
| DoorDash, Inc. | |
| McDonald’s Corp. | |
| Starbucks Corp. | |
| EV/EBITDA, Sector | |
| Consumer Services | |
| EV/EBITDA, Industry | |
| Consumer Discretionary | |
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
Booking Holdings Inc., 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 millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| DoorDash, Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Consumer Services | ||||||
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited a significant decline over the observed period, followed by a period of relative stabilization. Enterprise Value initially decreased from 2021 to 2022, while EBITDA increased substantially, resulting in a marked reduction in the ratio. This trend continued, albeit at a slower pace, through 2023 and 2024. A slight increase in the ratio is observed between 2024 and 2025, though it remains at a lower level than initially recorded.
- Enterprise Value
- Enterprise Value decreased from US$100,770 million in 2021 to US$91,495 million in 2022. It then increased significantly to US$134,904 million in 2023 and further to US$165,141 million in 2024. A decrease to US$136,784 million is noted in 2025.
- EBITDA
- EBITDA demonstrated a consistent upward trend from 2021 to 2024. It rose from US$2,220 million in 2021 to US$4,765 million in 2022, US$6,882 million in 2023, and US$9,178 million in 2024. A slight decrease to US$9,072 million is observed in 2025.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 45.39 in 2021 and decreased substantially to 19.20 in 2022. It remained relatively stable at 19.60 in 2023 and 17.99 in 2024. The ratio experienced a minor increase to 15.08 in 2025. The overall trend indicates a decreasing valuation relative to earnings before interest, tax, depreciation, and amortization.
The combination of fluctuating Enterprise Value and consistently increasing EBITDA suggests a changing perception of the company’s value by the market. The decrease in the EV/EBITDA ratio could indicate increased investor confidence in the company’s operational performance, or potentially, a reassessment of future growth prospects.