Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Qualcomm Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The annual financial data demonstrates significant fluctuations and overall growth in earnings metrics over the six-year period analyzed. Critical profit measures such as net income, earnings before tax (EBT), earnings before interest and tax (EBIT), and earnings before interest, tax, depreciation, and amortization (EBITDA) reveal distinct patterns of performance and volatility.
- Net Income
- Net income exhibited a generally upward trajectory from 2019 through 2022, increasing from 4,386 million US dollars in 2019 to a peak of 12,936 million US dollars in 2022. However, 2023 saw a notable decline to 7,232 million US dollars, followed by a recovery to 10,142 million in 2024. This pattern indicates a period of strong profitability growth interrupted by a sharp downward adjustment, then a subsequent partial rebound.
- Earnings Before Tax (EBT)
- EBT followed a similar trend, rising from 7,481 million US dollars in 2019 to a peak of 14,998 million US dollars in 2022. This was then followed by a pronounced drop in 2023 to 7,443 million US dollars, before increasing again to 10,336 million US dollars in 2024. The swings in EBT suggest that pre-tax profitability closely mirrored net income trends, with a substantial dip in 2023 impacting both metrics.
- Earnings Before Interest and Tax (EBIT)
- EBIT values also increased steadily from 8,108 million US dollars in 2019 to a high of 15,488 million US dollars in 2022. The 2023 figure dropped to 8,137 million US dollars, then rose to 11,033 million US dollars in 2024. Consistent with EBT and net income, EBIT shows significant growth through 2022, a sharp contraction in 2023, and a partial recovery in the final year.
- EBITDA
- EBITDA follows a comparable pattern of expansion and contraction. From 9,509 million US dollars in 2019, it grew to 17,250 million US dollars by 2022. In 2023, EBITDA fell markedly to 9,946 million US dollars but rebounded to 12,739 million US dollars in 2024. This indicator reflects operational profitability before depreciation and amortization, reinforcing the observation of strong operational earnings growth until 2022, interrupted by a slump in 2023, then a moderate recovery.
Overall, the data reveals a consistent phase of robust earnings growth from 2019 through 2022 across all major profitability metrics, suggesting effective operational and financial performance during this period. The noticeable decline in 2023 across all measures indicates an adverse event or challenging market conditions that temporarily suppressed earnings. The recovery in 2024 demonstrates resilience, with earnings improving though not yet reaching the peak levels observed in 2022. This cyclical pattern of growth, decline, and rebound provides insight into the company's earnings volatility and underlying financial dynamics over the reviewed period.
Enterprise Value to EBITDA Ratio, Current
Qualcomm Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 170,755) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 12,739) |
| Valuation Ratio | |
| EV/EBITDA | 13.40 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 48.07 |
| Analog Devices Inc. | 29.62 |
| Applied Materials Inc. | 17.83 |
| Broadcom Inc. | 57.78 |
| Intel Corp. | 111.13 |
| KLA Corp. | 32.28 |
| Lam Research Corp. | 26.18 |
| Micron Technology Inc. | 14.60 |
| NVIDIA Corp. | 47.95 |
| Texas Instruments Inc. | 27.10 |
| EV/EBITDA, Sector | |
| Semiconductors & Semiconductor Equipment | 59.25 |
| EV/EBITDA, Industry | |
| Information Technology | 35.24 |
Based on: 10-K (reporting date: 2024-09-29).
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
Qualcomm Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Sep 29, 2024 | Sep 24, 2023 | Sep 25, 2022 | Sep 26, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 193,526) | 127,495) | 135,213) | 158,429) | 150,377) | 100,307) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 12,739) | 9,946) | 17,250) | 12,415) | 7,714) | 9,509) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 15.19 | 12.82 | 7.84 | 12.76 | 19.49 | 10.55 | |
| 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 | 18.67 | |
| Applied Materials Inc. | 15.31 | 15.75 | 11.04 | 17.54 | 16.82 | 14.60 | |
| Broadcom Inc. | 45.78 | 26.42 | 13.54 | 19.72 | 18.89 | 16.32 | |
| Intel Corp. | 97.96 | 18.96 | 6.20 | 6.02 | 6.40 | — | |
| KLA Corp. | 24.77 | 15.67 | 14.97 | 19.26 | 18.10 | 14.14 | |
| Lam Research Corp. | 20.93 | 15.36 | 11.36 | 16.94 | 18.35 | 10.69 | |
| Micron Technology Inc. | 12.40 | 32.38 | 3.26 | 6.05 | 6.46 | 3.90 | |
| NVIDIA Corp. | 46.95 | 95.69 | 57.58 | 58.98 | 52.92 | — | |
| Texas Instruments Inc. | 22.89 | 16.36 | 14.69 | 15.54 | 21.75 | — | |
| EV/EBITDA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 33.98 | 26.56 | 14.51 | 15.52 | 14.73 | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 27.64 | 23.56 | 18.28 | 20.46 | 19.69 | — | |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 193,526 ÷ 12,739 = 15.19
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value showed a general upward trend over the period, starting at 100,307 million USD in 2019 and reaching a peak at 193,526 million USD in 2024. However, there were fluctuations during this time. After increasing to 150,377 million USD in 2020 and 158,429 million USD in 2021, the EV decreased notably to 135,213 million USD in 2022 and declined further to 127,495 million USD in 2023 before rising sharply again in 2024.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed significant volatility. It started at 9,509 million USD in 2019, declined to 7,714 million USD in 2020, then increased substantially to 12,415 million USD in 2021 and further to 17,250 million USD in 2022. There was a marked drop in 2023, falling to 9,946 million USD, followed by a recovery to 12,739 million USD in 2024. This indicates variability in operating performance across the years analyzed.
- Enterprise Value to EBITDA Ratio (EV/EBITDA)
- The EV/EBITDA ratio experienced considerable fluctuations, reflecting changes in both valuation and earnings power. Starting at 10.55 in 2019, it increased sharply to 19.49 in 2020, indicating higher valuation relative to EBITDA or reduced earnings. It then decreased to 12.76 in 2021 and further to 7.84 in 2022, suggesting improved earnings relative to enterprise value. The ratio increased again in 2023 to 12.82 and further to 15.19 in 2024, showing a relative increase in valuation compared to EBITDA in the most recent years.
- Overall Insights
- The financial data indicates periods of significant variability in both the company’s valuation and operational earnings. Substantial increases and decreases in EBITDA suggest fluctuations in business performance, which are directly influencing the company's valuation multiples. The recent uptick in enterprise value paired with a less pronounced increase in EBITDA has led to a relatively higher EV/EBITDA ratio, reflecting changed market perceptions or expectations of future growth and profitability risk.