Enterprise Value to EBITDA (EV/EBITDA)
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$9,072 million in 2025, suggesting a potential stabilization or slight contraction in operational profitability.
- Relationship between Profitability Metrics
- The difference between EBITDA and EBIT remained relatively stable across the observed period, indicating consistent depreciation and amortization expenses. The progression from EBIT to EBT shows a consistent increase in interest expense as profitability grows. The difference between EBT and Net Income reflects the impact of income taxes, which also increased alongside rising profits.
- Growth Rates
- The largest percentage increase in EBITDA occurred between 2021 and 2022, with a growth of approximately 114.6%. Subsequent years saw continued growth, but at decreasing rates. The growth from 2024 to 2025 was minimal, approximately a 1.1% decrease, signaling a potential shift in the growth trajectory.
Overall, the period from 2021 to 2024 demonstrates a period of robust profitability growth. The slight decrease in EBITDA in 2025 warrants further investigation to determine if this represents a temporary fluctuation or the beginning of a more sustained trend.
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Enterprise Value to EBITDA Ratio, Current
Booking Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 144,551) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 9,072) |
| Valuation Ratio | |
| EV/EBITDA | 15.93 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | 24.99 |
| Chipotle Mexican Grill Inc. | 18.70 |
| DoorDash, Inc. | 47.81 |
| McDonald’s Corp. | 16.42 |
| Starbucks Corp. | 27.26 |
| EV/EBITDA, Sector | |
| Consumer Services | 20.15 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 20.92 |
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 | 136,784) | 165,142) | 134,904) | 91,496) | 100,766) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 9,072) | 9,178) | 6,882) | 4,765) | 2,220) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 15.08 | 17.99 | 19.60 | 19.20 | 45.39 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | 19.06 | 23.48 | 40.65 | 36.61 | 338.63 | |
| Chipotle Mexican Grill Inc. | 21.49 | 32.63 | 36.37 | 29.62 | 40.00 | |
| DoorDash, Inc. | 42.86 | 117.31 | — | — | — | |
| McDonald’s Corp. | 18.95 | 18.72 | 18.04 | 20.87 | 17.49 | |
| Starbucks Corp. | 22.61 | 17.33 | 17.75 | 19.88 | 18.77 | |
| EV/EBITDA, Sector | ||||||
| Consumer Services | 19.76 | 21.52 | 22.30 | 23.77 | 27.18 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 45.15 | 20.91 | 18.33 | 20.01 | 21.51 | |
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
= 136,784 ÷ 9,072 = 15.08
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited a significant degree of fluctuation over the five-year period. Initial values were relatively high, followed by a substantial decrease, and then a period of stabilization before a final decline.
- Enterprise Value (EV)
- Enterprise Value decreased from US$100,766 million in 2021 to US$91,496 million in 2022, representing a decline of approximately 9.3%. It then increased considerably to US$134,904 million in 2023, and further to US$165,142 million in 2024. A decrease to US$136,784 million was observed in 2025.
- Earnings Before Interest, Tax, Depreciation, and Amortization (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, more than doubling. This growth continued to US$6,882 million in 2023 and peaked at US$9,178 million in 2024. A slight decrease to US$9,072 million was recorded in 2025.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 45.39 in 2021. A dramatic decrease was observed in 2022, falling to 19.20. The ratio remained relatively stable at 19.60 in 2023 and 17.99 in 2024. A further decline to 15.08 was noted in 2025. The overall trend indicates a decreasing valuation relative to earnings, particularly pronounced between 2021 and 2022, followed by a more gradual reduction.
The initial high ratio in 2021 suggests a potentially overvalued enterprise relative to its earnings. The subsequent decrease in the ratio, driven by both a decrease in EV and a substantial increase in EBITDA, indicates improved valuation. The stabilization in 2023 and 2024, coupled with continued EBITDA growth, suggests a more consistent valuation. The final decrease in 2025, despite relatively stable EBITDA, is attributable to the decline in Enterprise Value.
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