Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
First Solar Inc., EBITDA calculation
US$ in thousands
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 (Loss)
- The net income experienced significant volatility over the observed periods. Starting with a substantial loss in 2019, the figure sharply improved to a strong profit in 2020 and continued to increase in 2021. However, 2022 saw a reversal back to a loss, albeit less severe compared to 2019. The year 2023 demonstrated a remarkable recovery, achieving the highest net income in the given timeframe.
- Earnings Before Tax (EBT)
- Earnings before tax followed a generally positive upward trajectory, despite a negative result in 2019. From 2020 through 2021, EBT showed rapid growth, peaking in 2021. Although the value declined significantly in 2022, it remained positive, and 2023 marked the highest EBT recorded in these years, indicating strong profitability before tax.
- Earnings Before Interest and Tax (EBIT)
- EBIT trended similarly to EBT, starting with a loss in 2019, followed by consistent and substantial gains in subsequent years. The growth peaked in 2021, with a marked decrease in 2022 that stayed positive but reduced substantially compared to the prior year. The year 2023 recovered strongly, surpassing all previous EBIT levels recorded between 2019 and 2022.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a clear and steady growth pattern throughout the timeframe. Beginning from a positive base in 2019, it more than quadrupled by 2021, despite a slowdown in growth during 2022. The figures surged significantly higher again in 2023, achieving the highest EBITDA over the period, reflecting improved operational profitability and cash flow.
Enterprise Value to EBITDA Ratio, Current
First Solar Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 19,851,148) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,212,249) |
| Valuation Ratio | |
| EV/EBITDA | 16.38 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 42.53 |
| Analog Devices Inc. | 30.24 |
| Applied Materials Inc. | 17.07 |
| Broadcom Inc. | 56.64 |
| Intel Corp. | 109.57 |
| KLA Corp. | 31.87 |
| Lam Research Corp. | 25.59 |
| Micron Technology Inc. | 14.85 |
| NVIDIA Corp. | 44.73 |
| Qualcomm Inc. | 14.09 |
| Texas Instruments Inc. | 26.82 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 74.99 |
| EV/EBITDA, Industry | |
| Information Technology | 40.58 |
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
First Solar Inc., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | 13,966,957) | 15,638,230) | 6,454,817) | 7,119,181) | 3,642,553) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,212,249) | 290,547) | 845,169) | 548,022) | 112,128) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 11.52 | 53.82 | 7.64 | 12.99 | 32.49 | |
| 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 | 14.14 | |
| Lam Research Corp. | 15.36 | 11.36 | 16.94 | 18.35 | 10.69 | |
| 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 | 23.56 | 18.28 | 20.46 | 19.69 | — | |
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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 13,966,957 ÷ 1,212,249 = 11.52
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- Enterprise value exhibits a notable upward trend overall from 2019 through 2023. It more than doubled from approximately 3.64 billion USD in 2019 to a peak of 15.64 billion USD in 2022, before decreasing somewhat to around 13.97 billion USD in 2023. This suggests significant growth in perceived company valuation or market capitalization during this period, with a slight contraction in the latest year analyzed.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA shows substantial variability with an overall increasing trajectory. Starting from roughly 112 million USD in 2019, EBITDA rose sharply to 548 million USD in 2020 and further to approximately 845 million USD in 2021. A sharp decline occurred in 2022 to about 291 million USD, followed by a significant recovery to a peak of 1.21 billion USD in 2023. This pattern indicates operational performance fluctuations with a strong rebound in the most recent period.
- EV/EBITDA Ratio
- The EV/EBITDA multiple displays considerable volatility. The ratio declined steadily from 32.49 in 2019 to 7.64 in 2021, implying improved valuation relative to earnings and potentially enhanced operational efficiency or market conditions. However, it spiked sharply to 53.82 in 2022, reflecting the EBITDA decline alongside a high enterprise value, indicating possible overvaluation or transient earnings challenges that year. By 2023, the ratio decreased to 11.52, suggesting a partial normalization with improved earnings relative to company value.