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

Intuit Inc. (NASDAQ:INTU)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Intuit Inc., EBITDA calculation

US$ in millions

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12 months ended: Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Net income 1,826  1,557  1,211  971  979  365 
Less: Net income (loss) from discontinued operations —  —  —  —  173  (48)
Add: Income tax expense 372  324  292  396  397  299 
Earnings before tax (EBT) 2,198  1,881  1,503  1,367  1,203  712 
Add: Interest expense 14  15  20  31  35  27 
Earnings before interest and tax (EBIT) 2,212  1,896  1,523  1,398  1,238  739 
Add: Depreciation 189  199  228  214  195  157 
Add: Amortization of acquired intangible assets 29  26  25  22  43  74 
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,430  2,121  1,776  1,634  1,476  970 

Based on: 10-K (filing date: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01), 10-K (filing date: 2015-09-01).

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. Intuit Inc.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 81,723 
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,430 
Valuation Ratio
EV/EBITDA 33.63
Benchmarks
EV/EBITDA, Competitors1
Adobe Inc. 57.39
Alphabet Inc. 17.17
Autodesk Inc. 106.90
Facebook Inc. 22.63
International Business Machines Corp. 9.23
Microsoft Corp. 22.19
Oracle Corp. 12.14
salesforce.com inc. 75.18
ServiceNow Inc. 261.01
EV/EBITDA, Sector
Software & Computer Services 22.60
EV/EBITDA, Industry
Technology 20.49

Based on: 10-K (filing date: 2020-08-31).

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

Intuit Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jul 31, 2020 Jul 31, 2019 Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 86,745  72,691  55,493  35,892  28,897  22,124 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 2,430  2,121  1,776  1,634  1,476  970 
Valuation Ratio
EV/EBITDA3 35.70 34.27 31.25 21.97 19.58 22.81
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. 69.31 335.51 — — 75.90 52.55
Facebook Inc. — 17.76 14.64 21.98 23.48 35.80
International Business Machines Corp. — 10.23 9.54 10.76 11.72 7.85
Microsoft Corp. 21.60 17.10 15.58 14.93 13.70 12.37
Oracle Corp. 11.54 11.83 9.50 12.73 9.86 9.80
salesforce.com inc. 49.30 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: 2020-08-31), 10-K (filing date: 2019-08-30), 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01), 10-K (filing date: 2015-09-01).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 86,745 ÷ 2,430 = 35.70

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. Intuit Inc.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.