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

Facebook Inc. (NASDAQ:FB)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Facebook Inc., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 18,485  22,112  15,934  10,217  3,688 
Add: Income tax expense 6,327  3,249  4,660  2,301  2,506 
Earnings before tax (EBT) 24,812  25,361  20,594  12,518  6,194 
Add: Interest expense 20  10  23 
Earnings before interest and tax (EBIT) 24,832  25,370  20,600  12,528  6,217 
Add: Depreciation and amortization 5,741  4,315  3,025  2,342  1,945 
Earnings before interest, tax, depreciation and amortization (EBITDA) 30,573  29,685  23,625  14,870  8,162 

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28).

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

Enterprise Value to EBITDA Ratio, Current

Facebook Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 730,579 
Earnings before interest, tax, depreciation and amortization (EBITDA) 30,573 
Valuation Ratio
EV/EBITDA 23.90
Benchmarks
EV/EBITDA, Competitors1
Adobe Inc. 55.01
Alphabet Inc. 21.03
Autodesk Inc. 125.43
International Business Machines Corp. 9.36
Intuit Inc. 36.38
Microsoft Corp. 22.56
Oracle Corp. 11.74
salesforce.com inc. 73.80
ServiceNow Inc. 284.48
EV/EBITDA, Sector
Software & Computer Services 24.06
EV/EBITDA, Industry
Technology 21.47

Based on: 10-K (filing date: 2020-01-30).

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

Facebook 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)1 542,873  434,618  519,216  349,081  292,238 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 30,573  29,685  23,625  14,870  8,162 
Valuation Ratio
EV/EBITDA3 17.76 14.64 21.98 23.48 35.80
Benchmarks
EV/EBITDA, Competitors4
Adobe Inc. 41.16 37.27 36.77 28.22 33.16
Alphabet Inc. 17.07 15.69 19.10 15.51 16.21
Autodesk Inc. 335.51 75.90 52.55
International Business Machines Corp. 10.23 9.54 10.76 11.72 7.85
Intuit Inc. 34.27 31.25 21.97 19.58 22.81
Microsoft Corp. 17.10 15.58 14.93 13.70 12.37
Oracle Corp. 11.83 9.50 12.73 9.86 9.80
salesforce.com inc. 55.87 84.25 74.85 68.47 121.75
ServiceNow Inc. 187.17 260.48 1,506.85
EV/EBITDA, Sector
Software & Computer Services 17.73 15.68 17.79 15.60 14.87
EV/EBITDA, Industry
Technology 15.05 12.98 14.12 12.27 10.69

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 542,873 ÷ 30,573 = 17.76

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. Facebook Inc.’s EV/EBITDA ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.