Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Expedia Group Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Net Income (Loss) Attributable to Expedia Group, Inc. (US$ in millions)
- The net income demonstrates consistent growth from 2017 to 2019, increasing from 378 million to 565 million. However, a significant downturn occurred in 2020, with a substantial loss of 2612 million. In 2021, the net income shows a marginal recovery to a positive 12 million, indicating a stabilization but at a level far below the pre-2020 figures.
- Earnings Before Tax (EBT) (US$ in millions)
- EBT followed a growth trend from 417 million in 2017 to 775 million in 2019. The year 2020 reflected a sharp decline to a negative 3151 million, coinciding with the net income loss pattern. By 2021, EBT improved slightly to a negative 38 million, suggesting ongoing challenges in returning to profitability.
- Earnings Before Interest and Tax (EBIT) (US$ in millions)
- EBIT showed increases from 598 million in 2017 to 948 million in 2019. Similar to net income and EBT, EBIT dropped considerably in 2020 to a loss of 2791 million. The 2021 figure of 313 million indicates a recovery trajectory, although it remains below the levels seen before 2020.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (US$ in millions)
- EBITDA steadily increased from 1488 million in 2017 to 1858 million in 2019, reflecting growing operating profitability. The metric turned negative in 2020 with a loss of 1723 million, consistent with the significant impact observed in all profit-related measures during that year. In 2021, EBITDA rebounded to 1127 million, marking a partial recovery but still lagging behind the 2019 peak.
- Summary of Trends and Insights
- Across all key profit metrics, there was a clear upward trend from 2017 to 2019, indicative of improving financial performance. The year 2020 marked a dramatic decline across all measures, with substantial losses likely reflecting extraordinary adverse factors impacting the business environment. In 2021, some recovery is observable with positive earnings and improved earnings metrics; however, these figures remain significantly below the peak levels prior to 2020. The pattern suggests the company is in a recovery phase but has yet to reach the profitability and earnings strength demonstrated before the downturn.
Enterprise Value to EBITDA Ratio, Current
Expedia Group Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 27,553) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,127) |
| Valuation Ratio | |
| EV/EBITDA | 24.45 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | 17.73 |
| Home Depot Inc. | 15.68 |
| Lowe’s Cos. Inc. | 12.11 |
| TJX Cos. Inc. | 17.66 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 26.74 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 24.52 |
Based on: 10-K (reporting date: 2021-12-31).
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
Expedia Group Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 33,864) | 27,651) | 19,078) | 21,786) | 18,262) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,127) | (1,723) | 1,858) | 1,676) | 1,488) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 30.05 | — | 10.27 | 13.00 | 12.27 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Amazon.com Inc. | 21.27 | 32.24 | — | — | — | |
| Home Depot Inc. | 16.53 | 12.34 | — | — | — | |
| Lowe’s Cos. Inc. | 14.41 | 8.98 | — | — | — | |
| TJX Cos. Inc. | 65.35 | 10.33 | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 20.16 | 24.23 | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 21.32 | 29.33 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 33,864 ÷ 1,127 = 30.05
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a general upward trend over the five-year period. Starting at $18,262 million at the end of 2017, the EV increased to $21,786 million by the end of 2018, representing a growth of approximately 19.3%. In 2019, there was a slight decline to $19,078 million, marking a decrease of about 12.5% from the previous year. From 2019 to 2020, the enterprise value surged significantly to $27,651 million, an increase of 45%. The upward trajectory continued into 2021, reaching $33,864 million, reflecting a 22.4% increase year-over-year.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- The EBITDA demonstrated a mixed and volatile pattern during the period. From $1,488 million in 2017, it rose steadily to $1,676 million in 2018 and further to $1,858 million in 2019, indicating consistent growth in operating profitability. However, in 2020, there was a marked deterioration, with EBITDA plunging to a negative $1,723 million, signifying significant operational challenges or extraordinary impacts. In 2021, EBITDA recovered to a positive figure of $1,127 million but remained below the peaks of prior years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio followed the fluctuations in both enterprise value and EBITDA. It increased slightly from 12.27 in 2017 to 13 in 2018, then decreased to 10.27 in 2019, indicating improved valuation relative to earnings. No ratio is available for 2020 due to the negative EBITDA value, which makes the ratio non-calculable or not meaningful. In 2021, a notable spike in the ratio to 30.05 was observed, largely driven by the combination of a higher enterprise value and a still reduced EBITDA compared to earlier positive levels. This suggests the company was valued more highly relative to its operating earnings in 2021 than in previous years.
- Overall Insights
- The data reveals an enterprise value that generally increased despite fluctuations in operational earnings. The sharp EBITDA decline in 2020 is a critical event, likely reflective of external economic or market disruptions. The recovery of EBITDA in 2021, albeit not to previous highs, alongside a strong increase in enterprise value, led to a substantially elevated EV/EBITDA ratio. This indicates a possible divergence between market valuation and operational profitability during the recent period, which may suggest market optimism or anticipated future growth beyond current earnings.