Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Monolithic Power Systems Inc., EBITDA calculation
US$ in thousands
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 significant trends in profitability for the subject over the observed period from 2020 to 2024. Analyzing key earnings metrics such as net income, earnings before tax (EBT), earnings before interest and tax (EBIT), and earnings before interest, tax, depreciation, and amortization (EBITDA) provides a comprehensive view of the company's earnings trajectory.
- Net Income
- Net income shows a steady upward trend from 2020 through 2022, increasing from 164,375 thousand US dollars in 2020 to 437,672 thousand US dollars in 2022. This represents an approximate increase of 166%. The figure remains relatively stable in 2023 at 427,374 thousand US dollars, a slight decline compared to 2022. However, there is a substantial jump in 2024, reaching 1,786,700 thousand US dollars, which is a growth of over 300% compared to 2023.
- Earnings Before Tax (EBT) and Earnings Before Interest and Tax (EBIT)
- EBT and EBIT values are identical for all periods, indicating no significant interest expenses or adjustments outside tax impacting earnings. These metrics display a similar growth pattern to net income. EBT increased from 169,342 thousand US dollars in 2020 to 524,937 thousand US dollars in 2022, marking a more than threefold increase since 2020. A slight decrease is observed in 2023 to 505,841 thousand US dollars, followed by a moderate increase to 572,912 thousand US dollars in 2024. The overall growth in EBT from 2020 to 2024 is approximately 238%.
- EBITDA
- The EBITDA shows consistent growth from 188,528 thousand US dollars in 2020 to 562,051 thousand US dollars in 2022. This represents an approximate increase of 198%. Although a slight decrease occurs in 2023 to 546,009 thousand US dollars, EBITDA climbs again to a new high of 609,342 thousand US dollars in 2024, posting an overall rise of about 223% from 2020 to 2024.
Overall, the company demonstrates significant growth in profitability metrics over the five-year span. While 2023 sees some stabilizing or slight decreases in key earnings figures relative to 2022, the year 2024 shows a marked rebound, especially in net income, which surges dramatically. This could indicate improved operational efficiency, changes in cost structure, or one-time events positively affecting net earnings. The parity between EBT and EBIT suggests limited impact from interest expenses, and EBITDA's upward trend indicates healthy core earnings before non-cash expenses. These patterns reflect strong financial performance improvements, with temporarily moderated growth in 2023.
Enterprise Value to EBITDA Ratio, Current
Monolithic Power Systems Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 29,176,967) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 609,342) |
| Valuation Ratio | |
| EV/EBITDA | 47.88 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 54.90 |
| Analog Devices Inc. | 28.48 |
| Applied Materials Inc. | 16.83 |
| Broadcom Inc. | 61.02 |
| Intel Corp. | 102.28 |
| KLA Corp. | 31.58 |
| Lam Research Corp. | 25.62 |
| Micron Technology Inc. | 13.64 |
| NVIDIA Corp. | 49.31 |
| Qualcomm Inc. | 14.07 |
| Texas Instruments Inc. | 23.87 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 60.74 |
| EV/EBITDA, Industry | |
| Information Technology | 36.12 |
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
Monolithic Power Systems 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 thousands) | ||||||
| Enterprise value (EV)1 | 26,847,639) | 33,896,186) | 22,113,280) | 20,736,031) | 17,153,737) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 609,342) | 546,009) | 562,051) | 300,918) | 188,528) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 44.06 | 62.08 | 39.34 | 68.91 | 90.99 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Advanced Micro Devices Inc. | 34.40 | 65.81 | 22.63 | 34.19 | 62.10 | |
| Analog Devices Inc. | 27.10 | 15.56 | 16.23 | 38.55 | 23.61 | |
| Applied Materials Inc. | 15.31 | 15.75 | 11.04 | 17.54 | 16.82 | |
| Broadcom Inc. | 45.78 | 26.42 | 13.54 | 19.72 | 18.89 | |
| Intel Corp. | 97.96 | 18.96 | 6.20 | 6.02 | 6.40 | |
| KLA Corp. | 24.77 | 15.67 | 14.97 | 19.26 | 18.10 | |
| Lam Research Corp. | 20.93 | 15.36 | 11.36 | 16.94 | 18.35 | |
| Micron Technology Inc. | 12.40 | 32.38 | 3.26 | 6.05 | 6.46 | |
| NVIDIA Corp. | 46.95 | 95.69 | 57.58 | 58.98 | 52.92 | |
| Qualcomm Inc. | 15.19 | 12.82 | 7.84 | 12.76 | 19.49 | |
| Texas Instruments Inc. | 22.89 | 16.36 | 14.69 | 15.54 | 21.75 | |
| EV/EBITDA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 33.98 | 26.56 | 14.51 | 15.52 | 14.73 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 27.71 | 23.65 | 18.34 | 20.58 | 19.78 | |
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
= 26,847,639 ÷ 609,342 = 44.06
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated an overall upward trend from 2020 to 2023, increasing from approximately $17.15 billion to roughly $33.90 billion. However, in 2024, there was a notable decline to about $26.85 billion, representing a decrease relative to the prior year but still significantly above the levels recorded in 2020 to 2022.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed substantial growth over the five-year period. Starting at $188.5 million in 2020, earnings increased steadily through 2021 and surged in 2022, reaching $562.1 million. There was a slight dip in 2023 to $546.0 million, followed by a recovery to $609.3 million in 2024, marking the highest EBITDA level in the series.
- EV/EBITDA Ratio
- The EV/EBITDA ratio, an indicator of valuation, decreased notably from 90.99 in 2020 to a low of 39.34 in 2022, reflecting improved earnings relative to enterprise value. However, it increased again to 62.08 in 2023 before decreasing to 44.06 in 2024. This fluctuation suggests varying market perceptions of the company's valuation relative to its earnings during the period.
- Summary of Trends
- The data indicates a period of growth in both enterprise value and operational earnings, with EBITDA growth outpacing increases in enterprise value until 2022, resulting in a declining EV/EBITDA ratio. The subsequent volatility in both enterprise value and valuation multiples in 2023 and 2024 highlights changing market conditions or company performance expectations. The recovery in EBITDA to its highest point in 2024, coupled with a decrease in EV, contributed to a lower EV/EBITDA ratio, which may imply a more favorable earnings valuation at the end of the period.