Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Super Micro Computer Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
- Net Income
- The net income demonstrates a consistently strong upward trajectory over the periods analyzed. Beginning at 71,918 thousand USD in mid-2019, there is gradual growth through 2021, followed by a significant jump in 2022 to 285,163 thousand USD. This accelerating growth continues, reaching 639,998 thousand USD in 2023 and further climbing to 1,152,666 thousand USD by 2024. This pattern indicates enhanced profitability and successful operational performance.
- Earnings Before Tax (EBT)
- EBT exhibits a relatively stable level from 2019 through 2020, around 87,000 thousand USD, then increases moderately in 2021. In 2022, a substantial rise to 338,039 thousand USD occurs, followed by continued rapid growth to 750,664 thousand USD in 2023 and 1,215,960 thousand USD in 2024. This reflects a strong improvement in earnings capacity before tax expenses, consistent with the net income increments.
- Earnings Before Interest and Tax (EBIT)
- The EBIT margin follows a similar pattern to EBT, slightly higher in initial years, starting at 93,492 thousand USD in 2019, and showing steady but modest growth until 2021. A sharp increase is observed in 2022 with 344,452 thousand USD, nearly doubling compared to previous years. Subsequent years see robust growth with EBIT reaching 761,155 thousand USD in 2023 and 1,235,312 thousand USD in 2024. This indicates improved operational efficiency and earning power before interest and tax deductions.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA has shown continual growth from 117,694 thousand USD in 2019 to 149,471 thousand USD in 2021. The data reveals a marked escalation beginning in 2022, rising sharply to 376,923 thousand USD, reflecting stronger core earnings and cash flow generation capabilities. The upward momentum sustains through 2023 and 2024, with EBITDA reaching 796,059 thousand USD and 1,276,297 thousand USD respectively, suggesting significant enhancement in operational performance and profitability before non-cash charges.
Enterprise Value to EBITDA Ratio, Current
Super Micro Computer Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 28,901,128) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,276,297) |
| Valuation Ratio | |
| EV/EBITDA | 22.64 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | 22.57 |
| Arista Networks Inc. | 35.02 |
| Cisco Systems Inc. | 18.10 |
| Dell Technologies Inc. | 11.00 |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | 21.83 |
| EV/EBITDA, Industry | |
| Information Technology | 33.91 |
Based on: 10-K (reporting date: 2024-06-30).
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
Super Micro Computer Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 27,531,684) | 13,351,606) | 3,957,189) | 1,672,177) | 1,255,796) | 912,580) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,276,297) | 796,059) | 376,923) | 149,471) | 117,938) | 117,694) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 21.57 | 16.77 | 10.50 | 11.19 | 10.65 | 7.75 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Apple Inc. | 25.29 | 21.66 | 19.15 | 20.47 | 23.12 | 13.59 | |
| Arista Networks Inc. | 36.90 | 31.29 | 24.52 | 37.29 | 26.96 | — | |
| Cisco Systems Inc. | 13.28 | 12.16 | 10.52 | 15.05 | 9.69 | 11.36 | |
| Dell Technologies Inc. | 11.43 | 6.61 | 4.85 | 9.32 | 8.64 | — | |
| EV/EBITDA, Sector | |||||||
| Technology Hardware & Equipment | 23.61 | 20.01 | 17.26 | 19.17 | 19.89 | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 27.64 | 23.56 | 18.28 | 20.46 | 19.69 | — | |
Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 27,531,684 ÷ 1,276,297 = 21.57
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a consistent and significant upward trend over the analyzed periods. Starting from approximately 913 million US dollars in mid-2019, it nearly doubled by mid-2020 and continued to increase each year thereafter. By mid-2023, the EV experienced a sharp rise, reaching over 13 billion US dollars, and further escalated to approximately 27.5 billion US dollars by mid-2024. This trajectory indicates substantial growth in the company's market valuation or capital structure throughout the timeframe.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA also shows a notable increase over the periods, with a more moderate pace initially, rising from about 118 million US dollars in mid-2019 to nearly 150 million in mid-2021. Starting in mid-2022, EBITDA growth accelerated markedly, reaching approximately 377 million US dollars, followed by a doubling to nearly 796 million in mid-2023, and further climbing to around 1.28 billion US dollars by mid-2024. This pattern suggests significant operational improvements or revenue expansions contributing to increased profitability before non-operating expenses.
- EV/EBITDA Ratio
- The EV/EBITDA ratio reveals varying valuation multiples over the periods. Initially, the ratio increased moderately from 7.75 in mid-2019 to around 11.19 by mid-2021, indicating the enterprise value was growing at a slightly faster rate than EBITDA. Following this period, the ratio briefly decreased to 10.5 in mid-2022 despite the rising EV and EBITDA, suggesting EBITDA growth outpaced valuation growth at that point. However, from mid-2022 onwards, the multiple surged dramatically, reaching 16.77 in mid-2023 and further expanding to 21.57 by mid-2024. This significant increase implies that the enterprise value grew substantially faster than EBITDA in recent years, possibly reflecting elevated market expectations, increased investor confidence, or other external valuation factors beyond operational earnings growth.