Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
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. | Microsoft Corp. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 3,047,224) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 105,140) |
Valuation Ratio | |
EV/EBITDA | 28.98 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Accenture PLC | 21.40 |
Adobe Inc. | 28.06 |
International Business Machines Corp. | 14.84 |
Intuit Inc. | 43.93 |
Oracle Corp. | 22.53 |
Palo Alto Networks Inc. | 103.65 |
Salesforce Inc. | 30.74 |
ServiceNow Inc. | 93.55 |
Synopsys Inc. | 53.12 |
EV/EBITDA, Sector | |
Software & Services | 28.96 |
EV/EBITDA, Industry | |
Information Technology | 29.75 |
Based on: 10-K (reporting date: 2023-06-30).
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
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 2,410,213) | 2,021,362) | 2,093,369) | 1,487,741) | 999,078) | 775,247) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 105,140) | 100,239) | 85,134) | 68,423) | 58,056) | 49,468) | |
Valuation Ratio | |||||||
EV/EBITDA3 | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | 15.67 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Accenture PLC | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | 13.79 | |
Adobe Inc. | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | 37.27 | |
International Business Machines Corp. | 14.41 | 22.17 | 12.53 | 12.28 | 10.23 | — | |
Intuit Inc. | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | 31.25 | |
Oracle Corp. | 21.80 | 17.12 | 13.78 | 11.54 | 11.83 | 9.50 | |
Palo Alto Networks Inc. | 85.08 | 515.16 | — | 349.95 | 117.16 | — | |
Salesforce Inc. | 38.42 | 38.91 | 33.92 | 49.78 | 56.71 | — | |
ServiceNow Inc. | 96.48 | 104.30 | 147.45 | 220.91 | 187.17 | — | |
Synopsys Inc. | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | 21.34 | |
EV/EBITDA, Sector | |||||||
Software & Services | 24.33 | 21.63 | 24.66 | 22.06 | 17.87 | — | |
EV/EBITDA, Industry | |||||||
Information Technology | 23.37 | 18.32 | 20.41 | 19.60 | 14.44 | — |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 2,410,213 ÷ 105,140 = 22.92
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. | Microsoft Corp. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |