Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

Meta Platforms Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income 39,098 23,200 39,370 29,146 18,485
Add: Income tax expense 8,330 5,619 7,914 4,034 6,327
Earnings before tax (EBT) 47,428 28,819 47,284 33,180 24,812
Add: Interest expense 446 176 15 14 20
Earnings before interest and tax (EBIT) 47,874 28,995 47,299 33,194 24,832
Add: Depreciation and amortization 11,178 8,686 7,967 6,862 5,741
Earnings before interest, tax, depreciation and amortization (EBITDA) 59,052 37,681 55,266 40,056 30,573

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).

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. Meta Platforms Inc. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Enterprise Value to EBITDA Ratio, Current

Meta Platforms Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 1,191,612
Earnings before interest, tax, depreciation and amortization (EBITDA) 59,052
Valuation Ratio
EV/EBITDA 20.18
Benchmarks
EV/EBITDA, Competitors1
Alphabet Inc. 18.34
Charter Communications Inc. 6.89
Comcast Corp. 6.78
Netflix Inc. 12.59
Walt Disney Co. 21.60
EV/EBITDA, Sector
Media & Entertainment 15.69
EV/EBITDA, Industry
Communication Services 13.20

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

Meta Platforms Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,164,614 459,285 599,752 693,202 542,873
Earnings before interest, tax, depreciation and amortization (EBITDA)2 59,052 37,681 55,266 40,056 30,573
Valuation Ratio
EV/EBITDA3 19.72 12.19 10.85 17.31 17.76
Benchmarks
EV/EBITDA, Competitors4
Alphabet Inc. 17.01 14.66 18.08 20.84 17.39
Charter Communications Inc. 7.09 7.68 9.97 11.53 11.86
Comcast Corp. 7.10 9.60 8.45 10.36 8.66
Netflix Inc. 11.85 8.40 9.51 16.57 13.35
Walt Disney Co. 17.34 17.80 34.53 60.13 16.10
EV/EBITDA, Sector
Media & Entertainment 14.86 12.37 14.24 17.93 14.61
EV/EBITDA, Industry
Communication Services 12.58 11.45 11.49 14.32 11.53

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).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,164,614 ÷ 59,052 = 19.72

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. Meta Platforms Inc. EV/EBITDA ratio increased from 2021 to 2022 and from 2022 to 2023.