Enterprise Value to EBITDA (EV/EBITDA)
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
AT&T Inc., EBITDA calculation
US$ in millions
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).
- Net Income (Loss) Attributable to AT&T
- The net income exhibited significant volatility across the analyzed periods. It began with a substantial loss of $5,176 million at the end of 2020, followed by a strong recovery to a profit of $20,081 million in 2021. This was succeeded by another loss in 2022 amounting to $8,524 million. Subsequently, the net income returned to profitability in 2023 with $14,400 million and then decreased somewhat to $10,948 million in 2024. Overall, the net income shows a pattern of sharp fluctuations but ends the period in a positive range.
- Earnings Before Tax (EBT)
- The earnings before tax mirrored the volatility seen in net income, though with less pronounced negatives. Starting from a loss of $2,856 million in 2020, EBT surged to a high of $26,947 million in 2021. It then reverted to a loss of $3,094 million in 2022, followed by positive earnings of $19,848 million in 2023, and a moderate decline to $16,698 million in 2024. This pattern also reveals cyclical earnings with notable recovery phases after downturns.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed a generally positive trend, with only modest fluctuations. It started at $5,069 million in 2020, increased substantially to $33,831 million in 2021, then decreased to $3,014 million in 2022. In 2023 and 2024, EBIT rose again to $26,552 million and $23,457 million, respectively. Despite the percentage drops, EBIT remained positive throughout, indicating operational profitability despite some variability.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated the largest numerical values and showed a similar trend to other earnings metrics but with steadier performance. From $42,188 million in 2020, it climbed to a peak of $67,699 million in 2021, then sharply declined to $21,035 million in 2022. The metric recovered to $45,329 million in 2023, followed by a slight decrease to $44,037 million in 2024. Despite these fluctuations, EBITDA remained robust, indicating strong underlying cash flow generation capacity compared to net income or EBT.
- Overall Analysis
- The financial data exhibits recurring cyclical trends with large swings between negative and positive earnings. The year 2021 stands out as a peak period across all metrics, followed by a considerable downturn in 2022. The recovery in 2023, maintained at somewhat lower levels in 2024, suggests resilience but also continued volatility. EBITDA's relatively higher and more stable values imply solid operational cash flows despite volatility in net income and taxable earnings. The patterns indicate the possible impact of non-operational factors, costs, or exceptional items influencing profitability variability across these years.
Enterprise Value to EBITDA Ratio, Current
AT&T Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| T-Mobile US Inc. | |
| Verizon Communications Inc. | |
| EV/EBITDA, Sector | |
| Telecommunication Services | |
| EV/EBITDA, Industry | |
| Communication Services | |
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
AT&T 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 millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| T-Mobile US Inc. | ||||||
| Verizon Communications Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Telecommunication Services | ||||||
| EV/EBITDA, Industry | ||||||
| Communication Services | ||||||
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
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a declining trend from 2020 to 2023, decreasing from 369,254 million US$ in 2020 to 264,921 million US$ in 2023. However, there is a notable reversal in 2024 where the EV increases to 316,146 million US$. This pattern suggests a period of valuation contraction followed by a partial recovery in the latest period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA exhibits considerable volatility during the observed periods. It starts at 42,188 million US$ in 2020, rises sharply to 67,699 million US$ in 2021, then experiences a steep decline to 21,035 million US$ in 2022. In 2023, EBITDA recovers to 45,329 million US$, followed by a slight decrease to 44,037 million US$ in 2024. This indicates fluctuating operational profitability with a significant drop in 2022 but a general recovery afterward.
- EV/EBITDA Ratio
- The EV/EBITDA ratio reflects the relationship between market valuation and operating earnings, and it varies substantially over the period. It starts relatively high at 8.75 in 2020, declines sharply to 5.09 in 2021 correlating with EBITDA growth, spikes to 13.24 in 2022 aligning with the EBITDA decline, then declines again to 5.84 in 2023, and rises moderately to 7.18 in 2024. These fluctuations indicate varying investor sentiment and changes in operational performance relative to valuation.
- Overall Insights
- The data reveals a period of financial instability characterized by significant EBITDA volatility and corresponding swings in valuation multiples. The decline in enterprise value until 2023 reflects decreased market capitalization or increased liabilities, while the recovery in 2024 suggests improved market conditions or strategic changes. The EBITDA volatility, especially the sharp drop in 2022, signals operational challenges or external factors impacting earnings. The EV/EBITDA ratio’s fluctuations underscore changing perceptions of value and profitability throughout the period.