Enterprise Value to EBITDA (EV/EBITDA)
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Meta Platforms Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data reveals several significant trends in the company's profitability and operational performance over the five-year period ending December 31, 2024.
- Net Income
- Net income demonstrated a general upward trajectory with some fluctuations. It increased from $29,146 million in 2020 to $39,370 million in 2021, representing robust growth. However, it then declined notably to $23,200 million in 2022 before recovering strongly to $39,098 million in 2023, and surged further to reach $62,360 million in 2024. This pattern indicates some volatility in profitability but an overall strong growth trend toward the end of the period.
- Earnings Before Tax (EBT)
- EBT closely follows the trend observed in net income, reflecting similar operational and cost structures. It increased from $33,180 million in 2020 to $47,284 million in 2021, dropped to $28,819 million in 2022, then rebounded to $47,428 million in 2023. The largest increase occurred in 2024, reaching $70,663 million, which suggests improved earnings efficiency and possibly favorable tax or non-operating conditions.
- Earnings Before Interest and Tax (EBIT)
- EBIT remained largely consistent relative to EBT, with values of $33,194 million in 2020, rising to $47,299 million in 2021, declining to $28,995 million in 2022, and increasing again to $47,874 million in 2023. It then peaked at $71,378 million in 2024. This stability between EBIT and EBT indicates minimal interest expenses and consistent tax impacts over the years. The substantial rise by 2024 reflects enhanced operating profitability.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA figures show a similar overall pattern but with more pronounced growth, highlighting strong operational cash flow generation. Starting at $40,056 million in 2020, it climbed to $55,266 million in 2021, dropped to $37,681 million in 2022, then increased to $59,052 million in 2023, and significantly rose to $86,876 million in 2024. The larger increases relative to EBIT and net income suggest improved operational efficiency and/or lower depreciation and amortization expenses.
Overall, the data confirms a period of volatility in 2022 with declines across all profitability measures, followed by a strong recovery and accelerated growth in subsequent years, particularly in 2024. The substantial rise in EBITDA relative to EBIT and net income may indicate improved operational effectiveness contributing to enhanced profitability and cash flow generation. The alignment of EBIT and EBT figures suggests steady financial leverage and tax effects throughout the period.
Enterprise Value to EBITDA Ratio, Current
Meta Platforms Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Netflix Inc. | |
| Take-Two Interactive Software Inc. | |
| Walt Disney Co. | |
| EV/EBITDA, Sector | |
| Media & Entertainment | |
| EV/EBITDA, Industry | |
| Communication Services | |
Based on: 10-K (reporting date: 2024-12-31).
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
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | ||||||
| EV/EBITDA, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates notable volatility across the observed periods. Initially, there is a decline from 693,202 million US dollars at the end of 2020 to 459,285 million US dollars by the end of 2022. Following this low point, a substantial increase occurs, reaching 1,164,614 million US dollars at the end of 2023 and further escalating to 1,692,344 million US dollars by the end of 2024. This trend reflects significant shifts in valuation, possibly influenced by market conditions or company-specific developments.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA values show fluctuations throughout the timeframe. Beginning at 40,056 million US dollars in 2020, there is an increase in 2021 to 55,266 million, followed by a noteworthy decrease down to 37,681 million in 2022. Subsequently, EBITDA rebounds markedly to 59,052 million in 2023 and continues to rise to 86,876 million by 2024, indicating improving operational profitability after a temporary decline.
- EV/EBITDA Ratio
- The EV/EBITDA multiple exhibits significant variation, starting at 17.31 in 2020 and decreasing to a low of 10.85 in 2021. It then rises modestly to 12.19 in 2022, followed by a sharp increase to 19.72 in 2023 and a slight decrease to 19.48 in 2024. The ratio's fluctuations suggest changing market perceptions of valuation relative to earnings, possibly reflecting both the impacts of earnings volatility and shifts in investor sentiment or external economic factors.
- Overall Insights
- The data reveals a cyclical pattern in both enterprise value and EBITDA, with a notable dip around 2022 followed by a strong recovery. The increase in EV in the last two years, alongside rising EBITDA, indicates enhanced operational performance and improved market valuation. The elevated EV/EBITDA ratios in 2023 and 2024 may point to market optimism or expectations of sustained growth, although the multiple remains volatile, highlighting some uncertainty or market sensitivity to changes in earnings.