Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Booking Holdings Inc. (NASDAQ:BKNG)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Booking Holdings Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 4,865  3,998  2,341  2,135  2,551 
Add: Income tax expense 1,093  837  2,058  578  577 
Earnings before tax (EBT) 5,958  4,835  4,398  2,713  3,128 
Add: Interest expense 266  269  254  208  160 
Earnings before interest and tax (EBIT) 6,224  5,104  4,652  2,921  3,289 
Add: Depreciation and amortization 469  426  363  309  272 
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,693  5,530  5,015  3,230  3,561 

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

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. Booking Holdings Inc.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Booking Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 89,905 
Earnings before interest, tax, depreciation and amortization (EBITDA) 6,693 
Valuation Ratio
EV/EBITDA 13.43
Benchmarks
EV/EBITDA, Competitors1
McDonald’s Corp. 17.58
Starbucks Corp. 42.40
EV/EBITDA, Sector
Travel & Leisure 17.21
EV/EBITDA, Industry
Consumer Services 20.03

Based on: 10-K (filing date: 2020-02-26).

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

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 70,228  88,159  94,109  83,085  64,814 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 6,693  5,530  5,015  3,230  3,561 
Valuation Ratio
EV/EBITDA3 10.49 15.94 18.77 25.72 18.20
Benchmarks
EV/EBITDA, Competitors4
McDonald’s Corp. 17.65 16.58 14.42 14.07 14.08
Starbucks Corp. 17.27 11.72 15.02 15.54 18.63
EV/EBITDA, Sector
Travel & Leisure 15.53 14.90 15.60 16.62 16.23
EV/EBITDA, Industry
Consumer Services 15.05 14.26 13.52 12.21 12.18

Based on: 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-17).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 70,228 ÷ 6,693 = 10.49

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. Booking Holdings Inc.’s EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019.