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).
| 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. | Marriott International Inc. EBITDA decreased from 2017 to 2018 and from 2018 to 2019. |
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. | 43.65 |
| Booking Holdings Inc. | 17.69 |
| Carnival Corp. & plc | 10.93 |
| Chipotle Mexican Grill Inc. | 40.70 |
| McDonald’s Corp. | 17.04 |
| Starbucks Corp. | 15.12 |
| EV/EBITDA, Sector | |
| Consumer Services | 22.79 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 29.86 |
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. | 10.49 | — | — | — | — | |
| Carnival Corp. & plc | 8.11 | 9.21 | — | — | — | |
| Chipotle Mexican Grill Inc. | 34.03 | — | — | — | — | |
| McDonald’s Corp. | 17.65 | — | — | — | — | |
| Starbucks Corp. | 17.27 | 11.72 | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Consumer Services | 14.59 | — | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 17.37 | — | — | — | — | |
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.
| 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. | Marriott International Inc. EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019. |