Enterprise Value to EBITDA (EV/EBITDA)
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2020
- Debt to Equity since 2020
- Total Asset Turnover since 2020
- Price to Operating Profit (P/OP) since 2020
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Palantir Technologies Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 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).
The financial performance, as indicated by earnings metrics, demonstrates a significant shift from negative values to substantial profitability over the observed period. A consistent upward trend is evident across all reported earnings measures – Net Income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA). The period between 2021 and 2025 showcases a marked improvement in financial health.
- EBITDA Trend
- EBITDA exhibited a negative value in both 2021 and 2022, registering at -469,957 and -334,447 thousand US dollars respectively. A positive turning point occurred in 2023, with EBITDA reaching 273,915 thousand US dollars. This positive momentum continued, accelerating to 520,760 thousand US dollars in 2024 and culminating in a substantial 1,683,513 thousand US dollars in 2025. This represents a considerable increase in operational profitability over the five-year period.
- Relationship between Earnings Measures
- The values for EBT and EBIT are nearly identical across all reported years, indicating minimal interest expense. The difference between EBIT and EBITDA primarily reflects depreciation and amortization expenses. The consistent relationship between these measures suggests a stable capital structure and depreciation policy throughout the period.
- Net Income Progression
- Net income mirrors the overall trend of improving profitability. Starting with a loss of -520,379 thousand US dollars in 2021, it progressed to a loss of -373,705 thousand US dollars in 2022. Profitability was achieved in 2023 with a net income of 209,825 thousand US dollars, which then grew significantly to 462,190 thousand US dollars in 2024 and 1,625,033 thousand US dollars in 2025. The growth in net income is consistent with the increases observed in the preceding earnings measures.
The substantial growth in all earnings metrics from 2023 to 2025 suggests a period of accelerated operational improvement and increasing profitability. The transition from losses in 2021 and 2022 to significant profits by 2025 indicates a successful strategic shift or improved market conditions.
Enterprise Value to EBITDA Ratio, Current
Palantir Technologies Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| AppLovin Corp. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Datadog Inc. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Oracle Corp. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| EV/EBITDA, Sector | |
| Software & Services | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2025-12-31).
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
Palantir Technologies Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Software & Services | ||||||
| EV/EBITDA, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibits a significant fluctuation over the observed period. Initially, the ratio is unavailable for 2021 and 2022, coinciding with negative EBITDA values. A substantial increase is then noted, followed by a moderation in the most recent year presented.
- Enterprise Value to EBITDA Trend
- The EV/EBITDA ratio is calculated for the years 2023 through 2025. In 2023, the ratio stands at 175.93. This value increases markedly to 551.39 in 2024, representing a substantial expansion. Subsequently, the ratio decreases to 184.77 in 2025, though remaining significantly above the 2023 level.
The initial unavailability of the EV/EBITDA ratio is attributable to negative EBITDA figures in 2021 and 2022. The transition to positive EBITDA in 2023 allows for the calculation of the ratio, initiating the observed trend. The dramatic increase in the ratio in 2024 suggests that enterprise value grew at a considerably faster rate than EBITDA during that period. The subsequent decline in 2025 indicates a relative increase in EBITDA compared to enterprise value, although enterprise value itself continued to grow.
- Enterprise Value
- Enterprise Value demonstrates a consistent upward trend throughout the period. Starting at 21,491,473 in 2021, it decreases to 15,242,186 in 2022, then increases substantially to 48,189,177 in 2023. This growth accelerates in 2024, reaching 287,139,473, and continues into 2025, reaching 311,064,403.
- EBITDA
- EBITDA transitions from negative values in 2021 (-469,957) and 2022 (-334,447) to positive values in 2023 (273,915). It then experiences significant growth, reaching 520,760 in 2024 and further increasing to 1,683,513 in 2025.
The interplay between the increasing Enterprise Value and the shift from negative to positive, and then rapidly growing, EBITDA is the primary driver of the observed EV/EBITDA ratio trend. The substantial growth in both metrics in the later years suggests increasing operational performance, but the higher rate of growth in Enterprise Value in 2024 resulted in a peak ratio value.