Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
NVIDIA Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
The financial performance indicators demonstrate a consistent upward trend over the observed period. Net income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibit growth from 2021 through the projected figures for 2026. However, the rate of growth varies significantly across the years, with a particularly substantial increase observed between 2023 and 2024.
- Overall Growth Trend
- From 2021 to 2023, EBITDA experienced moderate growth, increasing from US$5,691 million to US$5,987 million. This represents a relatively slow growth rate. A significant acceleration in growth is then apparent, with EBITDA reaching US$35,583 million in 2024, US$86,137 million in 2025, and a projected US$144,552 million in 2026. This indicates a period of rapid expansion beginning in 2024.
- Relationship between Net Income and EBITDA
- EBITDA consistently exceeds net income throughout the period. This is expected, as EBITDA represents earnings before accounting for interest, taxes, depreciation, and amortization – all deductions from gross profit to arrive at net income. The gap between EBITDA and net income widens considerably in the later years, reflecting the substantial growth in EBITDA and the impact of these deductions on the final net income figure.
- EBITDA vs. EBIT and EBT
- EBITDA is consistently higher than both EBIT and EBT, as anticipated. The difference between EBITDA and EBIT represents depreciation and amortization expenses, while the difference between EBIT and EBT reflects interest expenses. The relatively small difference between EBIT and EBT suggests a stable capital structure and consistent interest expense relative to operating income.
- Growth Rate Acceleration
- The period between 2023 and 2024 marks a clear inflection point in growth. The increase in EBITDA from US$5,987 million to US$35,583 million represents a substantial percentage increase, significantly higher than the growth rates observed in the preceding two years. This suggests a potential shift in the company’s operational efficiency, market position, or external factors influencing revenue generation.
In summary, the indicators reveal a company experiencing accelerating growth, particularly from 2024 onwards. The consistent relationship between the different earnings measures suggests a stable underlying business model, while the significant increase in EBITDA indicates improved operational performance or favorable market conditions.
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Enterprise Value to EBITDA Ratio, Current
NVIDIA Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 4,287,836) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 144,552) |
| Valuation Ratio | |
| EV/EBITDA | 29.66 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 48.19 |
| Analog Devices Inc. | 32.25 |
| Applied Materials Inc. | 29.18 |
| Broadcom Inc. | 44.89 |
| Intel Corp. | 17.90 |
| KLA Corp. | 38.15 |
| Lam Research Corp. | 44.40 |
| Micron Technology Inc. | 23.53 |
| Qualcomm Inc. | 9.47 |
| Texas Instruments Inc. | 22.75 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 38.78 |
| EV/EBITDA, Industry | |
| Information Technology | 27.45 |
Based on: 10-K (reporting date: 2026-01-25).
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
NVIDIA Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Jan 25, 2026 | Jan 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 4,698,020) | 3,168,485) | 1,670,475) | 572,920) | 653,633) | 335,658) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 144,552) | 86,137) | 35,583) | 5,987) | 11,351) | 5,691) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 32.50 | 36.78 | 46.95 | 95.69 | 57.58 | 58.98 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | 43.70 | 34.40 | 65.81 | 22.63 | 34.19 | |
| Analog Devices Inc. | — | 25.52 | 27.10 | 15.56 | 16.23 | 38.55 | |
| Applied Materials Inc. | — | 20.40 | 15.31 | 15.75 | 11.04 | 17.54 | |
| Broadcom Inc. | — | 46.47 | 45.78 | 26.42 | 13.54 | 19.72 | |
| Intel Corp. | — | 17.16 | 97.96 | 18.96 | 6.20 | 6.02 | |
| KLA Corp. | — | 22.86 | 24.77 | 15.67 | 14.97 | 19.26 | |
| Lam Research Corp. | — | 19.50 | 20.93 | 15.36 | 11.36 | 16.94 | |
| Micron Technology Inc. | — | 11.63 | 12.40 | 32.38 | 3.26 | 6.05 | |
| Qualcomm Inc. | — | 13.05 | 15.19 | 12.82 | 7.84 | 12.76 | |
| Texas Instruments Inc. | — | 25.46 | 22.89 | 16.36 | 14.69 | 15.54 | |
| EV/EBITDA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 31.03 | 33.98 | 26.56 | 14.51 | 15.52 | |
| EV/EBITDA, Industry | |||||||
| Information Technology | — | 27.46 | 27.74 | 23.62 | 18.33 | 20.59 | |
Based on: 10-K (reporting date: 2026-01-25), 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31).
3 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 4,698,020 ÷ 144,552 = 32.50
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits considerable fluctuation over the observed period. Initially, the ratio demonstrates relative stability before experiencing significant volatility. Enterprise Value increased substantially over the period, while EBITDA also increased, but at a varying rate, influencing the ratio’s movements.
- Enterprise Value (EV)
- Enterprise Value increased from US$335.658 billion in 2021 to US$4.698 billion in 2026. The most substantial increase occurred between 2023 and 2024, rising from US$572.920 billion to US$1.670 billion. Growth continued at a strong pace through 2025 and 2026, though the percentage increase slowed relative to the prior year.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced growth from US$5.691 billion in 2021 to US$144.552 billion in 2026. Similar to Enterprise Value, the largest year-over-year increase in EBITDA occurred between 2023 and 2024, jumping from US$5.987 billion to US$35.583 billion. Subsequent growth in 2025 and 2026 was significant, but proportionally less dramatic than the prior year’s surge.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 58.98 in 2021 and decreased to 32.50 by 2026. The ratio remained relatively stable between 2021 and 2022, at 58.98 and 57.58 respectively. A substantial increase was observed in 2023, reaching 95.69, before declining sharply to 46.95 in 2024. This decline continued through 2025 (36.78) and 2026 (32.50), indicating a decreasing valuation relative to earnings. The decrease in the ratio from 2023 onward suggests that EBITDA growth outpaced the growth in Enterprise Value during those years.
The observed trend suggests a potential shift in investor sentiment or a change in the company’s financial profile. While Enterprise Value and EBITDA both increased, the decreasing EV/EBITDA ratio indicates that the market is placing a lower valuation on each dollar of EBITDA generated by the company over time. This could be due to various factors, including changing market conditions, increased competition, or evolving investor expectations.
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