Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Monster Beverage Corp., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-12-31).
- Net Income
- Net income exhibited an overall upward trend from 2019 to 2023, increasing from approximately 1.11 billion US dollars in 2019 to around 1.63 billion US dollars in 2023. The highest net income was recorded in 2023, despite a noticeable dip in 2022 compared to the preceding year. This suggests that while the company experienced some fluctuation, it recovered strongly by 2023.
- Earnings Before Tax (EBT)
- EBT demonstrated consistent growth over the five-year period, rising from approximately 1.42 billion US dollars in 2019 to about 2.07 billion US dollars in 2023. There was a slight decline in 2022 compared to 2021, but the figure rebounded significantly in 2023, reaching its peak level in the dataset. This indicates that profitability before tax improved overall, with temporary challenges in 2022.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures closely mirrored those of EBT, showing steady increases from nearly 1.42 billion US dollars in 2019 to roughly 2.07 billion US dollars in 2023. The trend included a small drop in 2022 relative to 2021, followed by a recovery in 2023. This parallel movement with EBT indicates stable operational profitability through the period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA displayed consistent growth throughout the timeframe, advancing from about 1.48 billion US dollars in 2019 to approximately 2.14 billion US dollars in 2023. Similar to the other measures, there was a decline in 2022 relative to 2021, but the company regained momentum in 2023, achieving its highest EBITDA in the period observed. This suggests strong operational cash flow generation ability despite external or internal challenges in 2022.
Enterprise Value to EBITDA Ratio, Current
Monster Beverage Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 53,704,468) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,137,635) |
| Valuation Ratio | |
| EV/EBITDA | 25.12 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Coca-Cola Co. | 20.73 |
| Mondelēz International Inc. | 12.55 |
| PepsiCo Inc. | 13.51 |
| Philip Morris International Inc. | 21.11 |
| EV/EBITDA, Sector | |
| Food, Beverage & Tobacco | 17.89 |
| EV/EBITDA, Industry | |
| Consumer Staples | 21.53 |
Based on: 10-K (reporting date: 2023-12-31).
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
Monster Beverage Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 58,254,789) | 49,154,351) | 41,602,700) | 44,182,735) | 32,183,522) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,137,635) | 1,633,229) | 1,851,593) | 1,683,226) | 1,476,745) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 27.25 | 30.10 | 22.47 | 26.25 | 21.79 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Coca-Cola Co. | 18.69 | 20.83 | 19.52 | 19.66 | — | |
| Mondelēz International Inc. | 14.65 | 21.64 | 15.62 | 15.14 | — | |
| PepsiCo Inc. | 16.75 | 18.63 | 18.42 | 17.17 | — | |
| Philip Morris International Inc. | 13.66 | 14.78 | 13.64 | 12.59 | — | |
| EV/EBITDA, Sector | ||||||
| Food, Beverage & Tobacco | 16.21 | 18.49 | 17.05 | 16.29 | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Staples | 16.39 | 16.42 | 15.65 | 14.89 | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 58,254,789 ÷ 2,137,635 = 27.25
4 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals several notable trends and fluctuations in key metrics.
- Enterprise Value (EV)
- The enterprise value exhibits a consistent upward trajectory from 2019 through 2023. Beginning at approximately $32.18 billion in 2019, EV increased significantly to $44.18 billion in 2020. A slight decline occurred in 2021, reducing EV to about $41.60 billion. However, subsequent years saw a strong recovery and growth, reaching $49.15 billion in 2022 and further rising to $58.25 billion in 2023. This overall pattern indicates growing market valuation over the period, with a temporary dip in 2021.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrates a general increase from 2019 through 2023, starting at approximately $1.48 billion in 2019 and rising steadily to $1.68 billion in 2020 and $1.85 billion in 2021. A reversal occurs in 2022 with a decrease to roughly $1.63 billion, followed by a robust recovery to about $2.14 billion in 2023. The temporary decline in 2022 contrasts with the strong growth in other years, suggesting possible operational or market challenges during that period which were successfully addressed in 2023.
- EV/EBITDA Ratio
- This ratio reflects the relationship between enterprise value and EBITDA, providing insight into valuation multiples over the period. Starting at 21.79x in 2019, it rose notably to 26.25x in 2020, suggesting increased market valuation relative to earnings. The ratio then decreased to 22.47x in 2021, consistent with the dip in EV and rise in EBITDA. A peak of 30.10x occurred in 2022, driven by the decline in EBITDA and increase in EV, indicating a higher valuation multiple during that year, which could imply market optimism or pricing above earnings. In 2023, the ratio decreased to 27.25x but remained elevated compared to earlier years, reflecting sustained higher valuation metrics despite improved earnings.
In summary, the financial data presents a narrative of growth in market valuation and earnings over most of the five-year span, with a notable disruption in 2021-2022. The enterprise value and EBITDA both declined or plateaued briefly but recovered strongly by 2023. The fluctuating EV/EBITDA ratio highlights variations in market sentiment or valuation relative to operational performance, peaking in 2022 before adjusting downward. These patterns underscore the company's resilience and evolving valuation dynamics in response to changing financial performance.