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: 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), 10-K (reporting date: 2020-01-26).
The annual financial data reveals significant growth trends in key profitability metrics over the six-year period analyzed. Net income shows an overall upward trajectory with some fluctuations, reaching a peak in the latest period under review.
- Net Income
- Net income increased steadily from 2,796 million USD in early 2020 to 9,752 million USD in early 2022. However, there was a notable decline in early 2023 to 4,368 million USD before sharply rising to 29,760 million USD in early 2024 and further to 72,880 million USD in early 2025.
- Earnings Before Tax (EBT)
- EBT closely follows the net income pattern, increasing from 2,970 million USD in 2020 to 9,941 million USD in 2022, before a decline in 2023 to 4,181 million USD. Subsequently, EBT surged to 33,818 million USD by 2024 and continued to a high of 84,026 million USD in 2025.
- Earnings Before Interest and Tax (EBIT)
- EBIT shows similar trends, increasing from 3,022 million USD in 2020 to 10,177 million USD in 2022. After a dip to 4,443 million USD in 2023, EBIT rose significantly to 34,075 million USD in 2024 and reached 84,273 million USD in 2025, indicating strong core operational profitability growth.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA follows the same overall pattern but at higher absolute values, consistent with including non-cash expenses. It initially rose from 3,403 million USD in 2020 to 11,351 million USD in 2022. A reduction occurred in 2023 to 5,987 million USD, followed by dramatic increases to 35,583 million USD in 2024 and 86,137 million USD in 2025.
The temporary decline across all profitability metrics in early 2023 may indicate operational challenges or market conditions negatively impacting earnings during that period. However, the subsequent recovery and sharp growth in 2024 and 2025 suggest a strong turnaround and significant expansion in financial performance, likely driven by improved revenues, efficiency gains, or other favorable factors.
The consistent proportional relationship among net income, EBT, EBIT, and EBITDA indicates stable management of interest, tax, depreciation, and amortization expenses relative to earnings. The strong increase in EBITDA over time also suggests robust cash flow generation capabilities.
Overall, the data indicates substantial and accelerating growth in profitability with one notable trough, reflecting a dynamic business environment with rapid recovery and expansion phases.
Enterprise Value to EBITDA Ratio, Current
NVIDIA Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 3,475,193) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 86,137) |
| Valuation Ratio | |
| EV/EBITDA | 40.34 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 39.50 |
| Analog Devices Inc. | 28.20 |
| Applied Materials Inc. | 15.10 |
| Broadcom Inc. | 51.68 |
| Intel Corp. | 104.46 |
| KLA Corp. | 29.34 |
| Lam Research Corp. | 23.42 |
| Micron Technology Inc. | 14.99 |
| Monolithic Power Systems Inc. | 52.48 |
| Qualcomm Inc. | 13.15 |
| Texas Instruments Inc. | 24.68 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 51.37 |
| EV/EBITDA, Industry | |
| Information Technology | 32.39 |
Based on: 10-K (reporting date: 2025-01-26).
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 26, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Jan 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 3,168,485) | 1,670,475) | 572,920) | 653,633) | 335,658) | 180,080) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 86,137) | 35,583) | 5,987) | 11,351) | 5,691) | 3,403) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 36.78 | 46.95 | 95.69 | 57.58 | 58.98 | 52.92 | |
| 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 | |
| Monolithic Power Systems Inc. | — | 44.06 | 62.08 | 39.34 | 68.91 | 90.99 | |
| 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 | — | 34.03 | 26.77 | 14.62 | 15.67 | 14.89 | |
| EV/EBITDA, Industry | |||||||
| Information Technology | — | 27.60 | 23.59 | 18.31 | 20.49 | 19.71 | |
Based on: 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), 10-K (reporting date: 2020-01-26).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 3,168,485 ÷ 86,137 = 36.78
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a general upward trajectory over the analyzed period. Beginning at 180,080 million US dollars in early 2020, it nearly doubled by January 2021 to 335,658 million and continued a steep increase to reach 653,633 million by January 2022. However, a decline is observed in early 2023, with EV dropping to 572,920 million, followed by a significant rise to 1,670,475 million in 2024 and further escalating to 3,168,485 million by early 2025. This pattern indicates considerable fluctuation with an overall sharp growth in valuation.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA values show a rising trend from 3,403 million US dollars in early 2020, nearly doubling to 5,691 million in 2021, and again approximately doubling to 11,351 million in 2022. Nevertheless, a notable drop occurs in 2023 to 5,987 million, followed by a dramatic surge to 35,583 million in 2024 and a further substantial increase to 86,137 million in 2025. This pattern suggests volatility in operating profitability, with periods of decrease offset by significant growth towards the end of the period.
- EV/EBITDA Ratio
- The EV/EBITDA ratio starts at 52.92 in 2020, climbing gradually to 58.98 in 2021 and slightly decreasing to 57.58 in 2022. In 2023, this ratio sharply increases to 95.69, indicating increased valuation relative to earnings. However, the ratio declines significantly over the next two years, falling to 46.95 in 2024 and 36.78 in 2025. The decreasing ratio during these years suggests an improvement in earnings relative to enterprise value, reflecting potentially enhanced operational efficiency or market reevaluation favoring profitability.