Stock Analysis on Net

Enphase Energy Inc. (NASDAQ:ENPH)

This company has been moved to the archive! The financial data has not been updated since February 9, 2024.

Enterprise Value to EBITDA (EV/EBITDA) 

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

Enphase Energy Inc., EBITDA calculation

US$ in thousands

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 438,936 397,362 145,449 133,995 161,148
Add: Income tax expense 74,203 54,686 (24,521) (14,585) (71,034)
Earnings before tax (EBT) 513,139 452,048 120,928 119,410 90,114
Add: Interest expense 8,839 9,438 45,152 21,001 9,691
Earnings before interest and tax (EBIT) 521,978 461,486 166,080 140,411 99,805
Add: Depreciation and amortization 74,708 58,775 30,846 18,103 14,119
Earnings before interest, tax, depreciation and amortization (EBITDA) 596,686 520,261 196,926 158,514 113,924

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).


Net Income
The net income experienced a decline from US$161,148 thousand in 2019 to US$133,995 thousand in 2020. Subsequently, it increased moderately to US$145,449 thousand in 2021, followed by a substantial rise in 2022 to US$397,362 thousand. This upward trajectory continued in 2023, reaching US$438,936 thousand. Overall, net income exhibited a strong upward trend after 2020, indicating improved profitability.
Earnings Before Tax (EBT)
The EBT increased steadily over the examined period. Starting at US$90,114 thousand in 2019, it rose to US$119,410 thousand in 2020 and then showed a slight increase to US$120,928 thousand in 2021. There was a significant jump to US$452,048 thousand in 2022, followed by further growth to US$513,139 thousand in 2023. This pattern highlights consistent improvements in operating efficiency and financial performance before tax considerations.
Earnings Before Interest and Tax (EBIT)
The EBIT demonstrated a continuous growth pattern year over year, beginning at US$99,805 thousand in 2019 and climbing to US$140,411 thousand in 2020. The upward trend continued with EBIT reaching US$166,080 thousand in 2021, then more than doubled to US$461,486 thousand in 2022, and further increased to US$521,978 thousand in 2023. This consistent rise reflects an expanding core operating profitability.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
The EBITDA followed a similar trajectory to EBIT, growing from US$113,924 thousand in 2019 to US$158,514 thousand in 2020. It further increased to US$196,926 thousand in 2021. Notably, it surged significantly in 2022 to US$520,261 thousand and continued to increase in 2023 to US$596,686 thousand. This indicates notable improvements in overall operational cash flow generation capability over the years.

Enterprise Value to EBITDA Ratio, Current

Enphase Energy Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 16,225,150
Earnings before interest, tax, depreciation and amortization (EBITDA) 596,686
Valuation Ratio
EV/EBITDA 27.19
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 49.22
Analog Devices Inc. 30.07
Applied Materials Inc. 15.78
Broadcom Inc. 70.90
Intel Corp. 118.62
KLA Corp. 24.72
Lam Research Corp. 23.36
Micron Technology Inc. 19.26
NVIDIA Corp. 47.64
Qualcomm Inc. 14.10
Texas Instruments Inc. 22.53
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 82.61
EV/EBITDA, Industry
Information Technology 43.65

Based on: 10-K (reporting date: 2023-12-31).

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

Enphase Energy Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 16,225,150 28,692,770 19,534,069 24,617,110 7,088,097
Earnings before interest, tax, depreciation and amortization (EBITDA)2 596,686 520,261 196,926 158,514 113,924
Valuation Ratio
EV/EBITDA3 27.19 55.15 99.19 155.30 62.22
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. 65.81 22.63 34.19 62.10
Analog Devices Inc. 15.56 16.23 38.55 23.61 18.67
Applied Materials Inc. 15.75 11.04 17.54 16.82 14.60
Broadcom Inc. 26.42 13.54 19.72 18.89 16.32
Intel Corp. 18.96 6.20 6.02 6.40
KLA Corp. 15.67 14.97 19.26 18.10
Lam Research Corp. 15.36 11.36 16.94 18.35
Micron Technology Inc. 32.38 3.26 6.05 6.46 3.90
NVIDIA Corp. 95.69 57.58 58.98 52.92
Qualcomm Inc. 12.82 7.84 12.76 19.49 10.55
Texas Instruments Inc. 16.36 14.69 15.54 21.75
EV/EBITDA, Sector
Semiconductors & Semiconductor Equipment 26.56 14.51 15.52 14.73
EV/EBITDA, Industry
Information Technology 23.65 18.34 20.58 19.78

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 16,225,150 ÷ 596,686 = 27.19

4 Click competitor name to see calculations.


Enterprise Value (EV) Trend
The enterprise value exhibited significant volatility over the analyzed period. Initially, it increased sharply from approximately 7.1 billion in 2019 to a peak of about 24.6 billion in 2020, then declined to 19.5 billion in 2021. It rose again substantially to nearly 28.7 billion in 2022 before dropping markedly to around 16.2 billion in 2023.
EBITDA Development
EBITDA displayed a consistent upward trend throughout the five-year span. Starting at approximately 114 million in 2019, it increased steadily each year, culminating at nearly 597 million in 2023. The most notable acceleration occurred post-2021, with EBITDA jumping from about 197 million to over 596 million by the end of 2023.
EV/EBITDA Ratio Analysis
The EV/EBITDA ratio showed a clear downward trend, indicating an improvement in valuation relative to earnings. The ratio began at 62.22 in 2019, peaked at 155.3 in 2020, and then consistently declined to 27.19 by 2023. This suggests that the enterprise value grew at a slower pace or decreased relative to EBITDA growth, reflecting potentially improved operational efficiency or market valuation adjustments over the period.