Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Palantir Technologies Inc., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals significant improvement in the company's profitability over the reported periods. Initially, the company experienced substantial net losses attributable to common stockholders, with a negative value of approximately -1.17 billion US dollars in 2020. Over the subsequent years, the net loss decreased steadily, reaching positive territory by the year ending December 31, 2023, with net income turning positive at 209.8 million US dollars and subsequently increasing to 462.2 million US dollars by the end of 2024.
Similar positive trajectories are observed in earnings before tax (EBT), which transitioned from a loss of roughly -1.18 billion US dollars in 2020 to a positive 237.1 million US dollars in 2023 and further increased to 489.2 million US dollars in 2024. This trend indicates a substantial turnaround in the company’s earnings capacity before tax considerations.
Earnings before interest and tax (EBIT) also followed the same pattern, improving from a loss of approximately -1.16 billion US dollars in 2020 to a positive 240.6 million US dollars in 2023, maintaining growth to reach 489.2 million US dollars in 2024. This suggests operational improvements and enhanced profitability excluding financing and tax impacts.
The EBITDA figures, which exclude depreciation and amortization, show the smallest loss among the earnings metrics in earlier years, starting at -1.15 billion US dollars in 2020 and improving to positive 273.9 million US dollars in 2023, then further growing to 520.8 million US dollars by 2024. The progression in EBITDA indicates improving operational cash flow generation capacity, reflecting stronger core business performance.
- Overall trend
- A consistent and pronounced movement from substantial losses in 2020 to robust profitability by 2024 across all key earnings metrics.
- Net income
- Significant reduction in losses year-over-year with a turnaround to positive net income starting in 2023.
- EBT and EBIT
- Both metrics demonstrate parallel improvements, confirming enhanced operating income and profitability before considering tax effects.
- EBITDA
- Improved rapidly, achieving positive figures earlier than EBIT, indicating improvements in cash earnings before non-cash expenses.
In conclusion, the data highlights the company’s successful transition from heavy losses to profitability over a five-year span, underpinned by a steady and marked improvement in both operational and overall earnings metrics.
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) | 331,148,662) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 520,760) |
| Valuation Ratio | |
| EV/EBITDA | 635.89 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 15.76 |
| Adobe Inc. | 19.52 |
| Cadence Design Systems Inc. | 52.61 |
| CrowdStrike Holdings Inc. | 399.83 |
| Fair Isaac Corp. | 53.36 |
| International Business Machines Corp. | 25.21 |
| Intuit Inc. | 45.97 |
| Microsoft Corp. | 28.05 |
| Oracle Corp. | 30.91 |
| Palo Alto Networks Inc. | 98.80 |
| Salesforce Inc. | 22.12 |
| ServiceNow Inc. | 84.35 |
| Synopsys Inc. | 45.45 |
| Workday Inc. | 52.12 |
| EV/EBITDA, Sector | |
| Software & Services | 31.59 |
| EV/EBITDA, Industry | |
| Information Technology | 34.93 |
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 287,139,473) | 48,189,177) | 15,242,186) | 21,491,473) | 41,738,848) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 520,760) | 273,915) | (334,447) | (469,957) | (1,151,017) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 551.39 | 175.93 | — | — | — | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | 19.87 | 17.26 | 14.25 | 23.31 | 17.46 | |
| Adobe Inc. | 22.06 | 34.07 | 22.32 | 35.44 | 43.06 | |
| Cadence Design Systems Inc. | 42.25 | 55.61 | 42.11 | 39.61 | 45.75 | |
| CrowdStrike Holdings Inc. | 262.20 | — | — | — | — | |
| Fair Isaac Corp. | 69.56 | 37.61 | 22.83 | 21.71 | 42.84 | |
| International Business Machines Corp. | 22.90 | 14.41 | 22.17 | 12.53 | 12.28 | |
| Intuit Inc. | 38.55 | 38.71 | 36.22 | 51.96 | 35.70 | |
| Microsoft Corp. | 23.66 | 22.92 | 20.17 | 24.59 | 21.74 | |
| Oracle Corp. | 21.81 | 21.80 | 17.12 | 13.78 | 11.54 | |
| Palo Alto Networks Inc. | 84.17 | 85.08 | 515.19 | — | 349.99 | |
| Salesforce Inc. | 31.64 | 38.31 | 38.88 | 33.83 | 49.45 | |
| ServiceNow Inc. | 87.89 | 96.48 | 104.30 | 147.45 | 220.91 | |
| Synopsys Inc. | 39.17 | 54.59 | 36.73 | 53.43 | 42.24 | |
| Workday Inc. | 86.37 | 216.44 | 147.90 | 670.04 | — | |
| EV/EBITDA, Sector | ||||||
| Software & Services | 27.25 | 25.27 | 22.55 | 25.66 | 23.30 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 27.64 | 23.56 | 18.28 | 20.46 | 19.69 | |
Based on: 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), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 287,139,473 ÷ 520,760 = 551.39
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value displayed a notable fluctuation over the analyzed years. Initially, it decreased significantly from approximately $41.7 billion at the end of 2020 to around $15.2 billion by the end of 2022. However, this trend reversed in subsequent years, with EV rising sharply to about $48.2 billion at the end of 2023 and then surging to approximately $287.1 billion by the end of 2024, indicating a substantial increase in the company's valuation in the most recent period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA figures demonstrate an improving trajectory over the years. The company recorded negative EBITDA throughout 2020 to 2022, though the losses decreased steadily from around -$1.15 billion in 2020 to approximately -$334 million in 2022. Notably, a positive EBITDA was achieved in 2023, amounting to about $274 million, which further increased to around $521 million in 2024, reflecting a transition from operating losses to profitability.
- EV/EBITDA Ratio
- The EV/EBITDA ratio, available for the last two years, escalated substantially from 175.93 in 2023 to 551.39 in 2024. This sharp rise suggests that the company’s enterprise value grew at a much faster pace than its EBITDA during this period, potentially indicating elevated market expectations or valuations relative to earnings.