Microsoft Corp. (NASDAQ:MSFT)

The financial data over the six-year period reveals a consistent upward trend across all key profitability metrics. Net income shows a continuous increase from 44,281 million US dollars in 2020 to an estimated 101,832 million US dollars in 2025, more than doubling over the period. This steady growth indicates strong earnings performance and improved profitability year over year.

Earnings before tax (EBT) follow a similar trajectory, rising from 53,036 million US dollars in 2020 to a projected 123,627 million US dollars in 2025. The growth in EBT slightly outpaces that of net income, which could be indicative of effective tax management or changes in tax rates.

The earnings before interest and tax (EBIT) figures also demonstrate persistent growth, increasing from 55,627 million US dollars in 2020 to 126,012 million US dollars in 2025. This trend suggests ongoing improvements in operating performance and efficiency, as EBIT excludes interest and tax expenses but reflects core business profitability.

EBITDA, a measure that further excludes non-cash depreciation and amortization expenses, rises substantially from 68,423 million US dollars in 2020 to 160,165 million US dollars in 2025. This indicates that earnings before accounting for capital expenditures and non-cash charges have improved markedly, reflecting strong operational cash generation capabilities and underlying business health.

Across all these metrics, the data suggests robust and sustained financial growth, with annual increments generally consistent and accelerating toward the later years. The pattern denotes strong operational performance and effective cost controls, contributing to enhanced profitability and cash flow generation capacity.

Enterprise Value (EV)

The enterprise value has shown a consistent upward trajectory over the observed periods. Starting at approximately $1.49 trillion in mid-2020, it increased substantially to about $2.09 trillion in mid-2021. Although there was a slight decline in mid-2022 to roughly $2.02 trillion, the trend resumed its upward movement thereafter, reaching an estimated $3.81 trillion by mid-2025. This pattern indicates an overall strong growth in market valuation across the six-year span.

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

EBITDA figures also reflect a positive growth pattern throughout the years. Beginning from approximately $68.4 billion in mid-2020, the EBITDA rose steadily to an estimated $160.2 billion by mid-2025. The increase was consistent with no declines, highlighting robust operational profitability and effective cost management.

EV/EBITDA Ratio

The EV to EBITDA ratio exhibited some fluctuations but remained within a relatively narrow range. It started at 21.74 in mid-2020 and peaked at 24.59 in mid-2021. A notable dip to 20.17 occurred in mid-2022, suggesting a period where the earnings relative to enterprise value improved. Following this, the ratio gradually increased again to about 23.79 by mid-2025. The oscillations in this ratio indicate varying investor sentiment and valuation multiples but imply overall steady market confidence relative to earnings.