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

Micron Technology Inc. (NASDAQ:MU)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Micron Technology Inc., EBITDA calculation

US$ in millions

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12 months ended: Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Net income (loss) attributable to Micron 2,687  6,313  14,135  5,089  (276) 2,899 
Add: Net income attributable to noncontrolling interest 23  45  3  1  1  — 
Add: Income tax expense 280  693  168  114  19  157 
Earnings before tax (EBT) 2,990  7,051  14,306  5,204  (256) 3,056 
Add: Interest expense 194  128  342  601  437  371 
Earnings before interest and tax (EBIT) 3,184  7,179  14,648  5,805  181  3,427 
Add: Depreciation expense and amortization of intangible assets 5,650  5,424  4,759  3,861  2,980  2,667 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,834  12,603  19,407  9,666  3,161  6,094 

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

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. Micron Technology Inc.’s EBITDA decreased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

Micron Technology Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 70,003 
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,834 
Valuation Ratio
EV/EBITDA 7.92
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 150.94
Analog Devices Inc. 23.74
Apple Inc. 24.73
Applied Materials Inc. 19.95
Broadcom Inc. 19.78
Cisco Systems Inc. 10.12
Intel Corp. 5.95
Lam Research Corp. 21.47
NVIDIA Corp. 93.87
Qualcomm Inc. 21.67
Texas Instruments Inc. 21.06
EV/EBITDA, Sector
Technology Hardware & Equipment 19.05
EV/EBITDA, Industry
Technology 21.63

Based on: 10-K (filing date: 2020-10-19).

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

Micron Technology Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 57,090  49,156  46,728  53,377  24,274  22,867 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,834  12,603  19,407  9,666  3,161  6,094 
Valuation Ratio
EV/EBITDA3 6.46 3.90 2.41 5.52 7.68 3.75
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. — 82.59 37.59 37.21 — —
Analog Devices Inc. 23.61 18.67 14.37 23.74 16.04 15.76
Apple Inc. 23.11 13.59 11.54 12.11 8.68 8.14
Applied Materials Inc. — 14.60 6.24 12.35 13.76 10.35
Broadcom Inc. — 16.32 12.21 16.58 34.17 15.64
Cisco Systems Inc. 9.69 11.36 12.07 7.81 7.66 6.90
Intel Corp. — 8.73 7.11 7.74 8.42 5.70
Lam Research Corp. 17.76 10.07 7.08 10.14 8.63 8.86
NVIDIA Corp. 52.90 21.10 40.89 26.29 14.36 9.05
Qualcomm Inc. 19.49 10.55 28.47 12.74 10.77 10.79
Texas Instruments Inc. — 17.73 13.08 14.42 12.95 9.86
EV/EBITDA, Sector
Technology Hardware & Equipment — 12.41 10.67 11.17 9.60 7.93
EV/EBITDA, Industry
Technology — 15.05 12.98 14.12 12.27 10.69

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 57,090 ÷ 8,834 = 6.46

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