Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Marriott International Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Net Income
- Net income exhibited fluctuations over the period. Beginning at 859 million US dollars in 2015, it decreased to 780 million in 2016, followed by a significant increase to 1,372 million in 2017 and a further rise to 1,907 million in 2018. However, in 2019, net income declined notably to 1,273 million, indicating variability in profitability towards the end of the period.
- Earnings Before Tax (EBT)
- EBT showed an overall upward trend initially, increasing from 1,255 million in 2015 to a peak of 2,836 million in 2017. After this peak, EBT decreased to 2,345 million in 2018 and further reduced to 1,599 million in 2019. This pattern suggests strong operational performance up to 2017, followed by a deterioration in earnings before taxes.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures mirrored the EBT trend, starting at 1,422 million in 2015 and marginally declining to 1,418 million in 2016. A significant increase occurred in 2017 to 3,124 million, followed by decreases to 2,685 million in 2018 and 1,993 million in 2019. The data indicates operational earnings reached a high in 2017 but faced a decline thereafter.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA also followed a similar trajectory, rising from 1,561 million in 2015 to 3,414 million in 2017. Subsequently, EBITDA decreased progressively to 2,969 million in 2018 and 2,396 million in 2019. This decline after 2017 may reflect increased operational costs or lower revenue profitability.
Enterprise Value to EBITDA Ratio, Current
Marriott International Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 37,405) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,396) |
| Valuation Ratio | |
| EV/EBITDA | 15.61 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | 22.48 |
| Booking Holdings Inc. | 20.32 |
| Chipotle Mexican Grill Inc. | 32.18 |
| McDonald’s Corp. | 17.88 |
| Starbucks Corp. | 16.75 |
Based on: 10-K (reporting date: 2019-12-31).
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
Marriott International Inc., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | 49,504) | 51,303) | 58,357) | 41,398) | 20,472) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,396) | 2,969) | 3,414) | 1,586) | 1,561) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 20.66 | 17.28 | 17.09 | 26.10 | 13.11 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | — | — | — | — | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | 17.27 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 49,504 ÷ 2,396 = 20.66
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced a substantial increase from 2015 to 2017, more than doubling from approximately 20.5 billion to 58.4 billion US dollars. However, this upward trend was followed by a decline in subsequent years, falling to 51.3 billion in 2018 and further to 49.5 billion in 2019. This pattern indicates a peak in market valuation around 2017, with a moderate reduction afterwards.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA showed a consistent growth trajectory from 2015 to 2017, increasing from 1.56 billion to 3.41 billion US dollars. Nevertheless, this positive momentum reversed starting in 2018, with EBITDA decreasing to 2.97 billion and further declining to 2.40 billion by 2019. The decline suggests a reduction in operational profitability or earnings generation capacity after 2017.
- EV/EBITDA Ratio
- The EV/EBITDA ratio was particularly high in 2016, peaking at 26.1, before decreasing significantly to around 17 in 2017 and 2018. In 2019, the ratio increased again to approximately 20.7. This ratio's fluctuations indicate varying market perceptions of enterprise value relative to earnings, with the highest valuation multiples seen in 2016 and some valuation expansion in 2019 despite declining EBITDA.
- Summary of Trends
- The period from 2015 to 2017 was characterized by growth in both enterprise value and EBITDA, suggesting strong operational and market performance. Post-2017, there is a noticeable decline in earnings, accompanied by a decrease in enterprise value, although valuation multiples exhibit some resilience or volatility. These patterns point to possible challenges in sustaining earnings growth while market valuation adjustments occurred in the latter years.