Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Twenty-First Century Fox Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
The financial performance over the periods from June 30, 2013, to June 30, 2018, exhibits notable variability across the key earnings metrics of the entity.
- Net Income Attributable to Stockholders
- The net income shows considerable fluctuations, beginning at 7,097 million USD in 2013 and then decreasing to 4,514 million USD in 2014. A significant rebound occurs in 2015, reaching 8,306 million USD, followed by a sharp decline in 2016 to 2,755 million USD. The subsequent periods see minor improvements with amounts of 2,952 million USD in 2017 and 4,464 million USD in 2018, indicating an overall volatile trend with no clear upward or downward trajectory.
- Earnings Before Tax (EBT)
- EBT follows a pattern similar to net income, starting at 8,736 million USD in 2013 and dropping to 5,189 million USD in 2014. It then peaks at 9,847 million USD in 2015, followed by a decline to 4,154 million USD in 2016. The values slightly increase to 4,689 million USD in 2017 but decrease again to 4,410 million USD in 2018. This pattern confirms the cyclicality observed in net income with pronounced volatility.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrates a similar fluctuating trend, initially recorded at 9,799 million USD in 2013, declining to 6,310 million USD in 2014. There is a substantial increase to 11,045 million USD in 2015, after which earnings fall sharply to 5,338 million USD in 2016. The figures modestly recover to 5,908 million USD in 2017 but decrease again to 5,658 million USD in 2018, maintaining an inconsistent earnings pattern.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- The EBITDA values reflect the overall trends seen in other earnings indicators. The amount declines from 10,685 million USD in 2013 to 7,537 million USD in 2014, rebounds to 11,861 million USD in 2015, and then sharply decreases to 5,943 million USD in 2016. Though EBITDA slightly increases in 2017 to 6,526 million USD, it falls again to 6,311 million USD in 2018. The pattern underscores a cyclical earnings profile with fluctuating operational profitability.
Enterprise Value to EBITDA Ratio, Current
Twenty-First Century Fox Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 104,923) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 6,311) |
| Valuation Ratio | |
| EV/EBITDA | 16.63 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 22.68 |
| Comcast Corp. | 5.33 |
| Meta Platforms Inc. | 20.79 |
| Netflix Inc. | 17.86 |
| Trade Desk Inc. | 39.42 |
| Walt Disney Co. | 16.79 |
Based on: 10-K (reporting date: 2018-06-30).
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
Twenty-First Century Fox Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 97,094) | 67,184) | 65,245) | 72,403) | 95,442) | 85,538) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 6,311) | 6,526) | 5,943) | 11,861) | 7,537) | 10,685) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 15.38 | 10.29 | 10.98 | 6.10 | 12.66 | 8.01 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Trade Desk Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 97,094 ÷ 6,311 = 15.38
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited fluctuations over the analyzed period. Initially, there was an increase from 85,538 million US dollars in 2013 to 95,442 million in 2014. However, the value then declined substantially to 72,403 million in 2015 and further decreased to 65,245 million in 2016. From 2016 onward, a slight recovery occurred, with the EV rising to 67,184 million in 2017, followed by a significant increase to 97,094 million in 2018, marking the highest point within the period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA showed considerable volatility throughout the years. Starting at 10,685 million US dollars in 2013, it experienced a sharp decrease in 2014 to 7,537 million. Subsequently, it rebounded strongly in 2015, reaching 11,861 million, surpassing the 2013 level. However, a notable decline ensued in 2016 and 2017, with EBITDA values falling to 5,943 million and 6,526 million, respectively. By 2018, EBITDA decreased marginally to 6,311 million, remaining significantly below its peak levels.
- EV/EBITDA Ratio
- The ratio of enterprise value to EBITDA demonstrated a highly variable pattern, reflecting changes in both the market valuation and operating performance. The ratio increased from 8.01 in 2013 to a peak of 12.66 in 2014, followed by a sharp decline to 6.1 in 2015, coinciding with the EBITDA rebound and EV decline. In 2016 and 2017, the ratio climbed again to around 11, indicating a relative rise in EV or a drop in EBITDA. By 2018, the ratio surged to 15.38, the highest in the series, suggesting that the enterprise value grew disproportionately compared to EBITDA, potentially indicating increased market expectations or other valuation factors affecting the company.