Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

NVIDIA Corp. (NASDAQ:NVDA)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

NVIDIA Corp., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Net income 2,796  4,141  3,047  1,666  614  631 
Add: Income tax expense 174  (245) 149  239  129  124 
Earnings before tax (EBT) 2,970  3,896  3,196  1,905  743  755 
Add: Interest expense 52  58  61  58  47  46 
Earnings before interest and tax (EBIT) 3,022  3,954  3,257  1,963  790  801 
Add: Depreciation and amortization 381  262  199  187  197  220 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,403  4,216  3,456  2,150  987  1,021 

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

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. NVIDIA Corp.’s EBITDA increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

NVIDIA Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 319,443 
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,403 
Valuation Ratio
EV/EBITDA 93.87
Benchmarks
EV/EBITDA, Competitors1
Advanced Micro Devices Inc. 150.94
Analog Devices Inc. 23.74
Apple Inc. 24.73
Applied Materials Inc. 19.95
Broadcom Inc. 19.78
Cisco Systems Inc. 10.12
Intel Corp. 5.95
Lam Research Corp. 21.47
Micron Technology Inc. 7.92
Qualcomm Inc. 21.67
Texas Instruments Inc. 21.06
EV/EBITDA, Sector
Technology Hardware & Equipment 19.05
EV/EBITDA, Industry
Technology 21.63

Based on: 10-K (filing date: 2020-02-20).

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

Microsoft Excel LibreOffice Calc
Jan 26, 2020 Jan 27, 2019 Jan 28, 2018 Jan 29, 2017 Jan 31, 2016 Jan 25, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 180,018  88,963  141,302  56,530  14,174  9,240 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,403  4,216  3,456  2,150  987  1,021 
Valuation Ratio
EV/EBITDA3 52.90 21.10 40.89 26.29 14.36 9.05
Benchmarks
EV/EBITDA, Competitors4
Advanced Micro Devices Inc. — 82.59 37.59 37.21 — —
Analog Devices Inc. 23.61 18.67 14.37 23.74 16.04 15.76
Apple Inc. 23.11 13.59 11.54 12.11 8.68 8.14
Applied Materials Inc. — 14.60 6.24 12.35 13.76 10.35
Broadcom Inc. — 16.32 12.21 16.58 34.17 15.64
Cisco Systems Inc. 9.69 11.36 12.07 7.81 7.66 6.90
Intel Corp. — 8.73 7.11 7.74 8.42 5.70
Lam Research Corp. 17.76 10.07 7.08 10.14 8.63 8.86
Micron Technology Inc. 6.46 3.90 2.41 5.52 7.68 3.75
Qualcomm Inc. 19.49 10.55 28.47 12.74 10.77 10.79
Texas Instruments Inc. — 17.73 13.08 14.42 12.95 9.86
EV/EBITDA, Sector
Technology Hardware & Equipment — 12.41 10.67 11.17 9.60 7.93
EV/EBITDA, Industry
Technology — 15.05 12.98 14.12 12.27 10.69

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 180,018 ÷ 3,403 = 52.90

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. NVIDIA Corp.’s EV/EBITDA ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.