Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) 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: 2025-12-31), 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).
The financial performance indicators reveal significant fluctuations over the five-year period. A notable trend is the volatility in profitability metrics, particularly between 2021 and 2023, followed by a period of stabilization and subsequent growth. Earnings before interest, tax, depreciation and amortization (EBITDA) experienced a substantial decline from 2021 to 2022, before partially recovering in 2023 and stabilizing in 2024, and then increasing again in 2025.
- EBITDA Trend
- EBITDA began at US$67,699 million in 2021, representing the highest value in the observed period. A significant decrease occurred in 2022, falling to US$21,035 million. This represents a decline of approximately 68.9%. A partial recovery was seen in 2023, with EBITDA reaching US$45,329 million. EBITDA remained relatively stable in 2024 at US$44,037 million, before increasing to US$54,697 million in 2025.
- Relationship between Net Income and EBITDA
- The relationship between net income and EBITDA is not consistently aligned. While EBITDA decreased substantially in 2022, net income experienced a loss of US$8,524 million, indicating that factors beyond operational profitability significantly impacted the bottom line. The recovery in EBITDA in 2023 coincided with a return to positive net income of US$14,400 million. Further, the continued growth in both EBITDA and net income in 2025 suggests a strengthening correlation between operational performance and overall profitability.
- EBIT and EBITDA Comparison
- EBITDA consistently exceeded EBIT throughout the period, as expected, due to the inclusion of depreciation and amortization expenses in the calculation of EBIT. The gap between EBITDA and EBIT narrowed in 2022, reflecting the lower overall profitability. The trend in EBIT mirrors that of EBITDA, with a decline in 2022, partial recovery in 2023, stabilization in 2024, and growth in 2025. This suggests that the underlying operational performance, before considering depreciation and amortization, is a key driver of the observed trends.
- Earnings Before Tax (EBT) Analysis
- EBT followed a similar pattern to EBITDA and EBIT, experiencing a substantial decrease in 2022 before recovering in subsequent years. The negative EBT in 2022 (-US$3,094 million) contributed to the net loss for that year. The increase in EBT to US$27,007 million in 2025 indicates improved profitability before considering income tax expenses.
In summary, the period was characterized by initial volatility followed by stabilization and growth. The recovery in EBITDA, EBIT, and EBT, coupled with positive net income in the later years, suggests improving financial health. However, the significant decline in 2022 warrants further investigation to understand the underlying causes and assess the sustainability of the subsequent recovery.
Enterprise Value to EBITDA Ratio, Current
AT&T Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ 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: 2025-12-31).
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the five-year period. Initial values decreased significantly before stabilizing and showing a slight increase towards the end of the observed timeframe. A detailed examination of the ratio’s behavior reveals key trends and potential areas for further investigation.
- Enterprise Value (EV)
- Enterprise Value decreased from US$344,709 million in 2021 to US$278,467 million in 2022, representing a substantial decline. It continued to decrease, albeit at a slower rate, reaching US$264,921 million in 2023. A recovery was then observed, with EV increasing to US$316,146 million in 2024 and further to US$323,610 million in 2025. This suggests potential shifts in market valuation or capital structure.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced a dramatic decrease from US$67,699 million in 2021 to US$21,035 million in 2022. A significant recovery followed, with EBITDA rising to US$45,329 million in 2023 and remaining relatively stable at US$44,037 million in 2024. Further growth was observed in 2025, with EBITDA reaching US$54,697 million. This indicates a substantial improvement in operational profitability following the initial decline.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 5.09 in 2021. It increased sharply to 13.24 in 2022, primarily driven by the decrease in EBITDA and the decrease in EV. The ratio then decreased to 5.84 in 2023 as EBITDA recovered. A further increase to 7.18 was noted in 2024, followed by a slight decrease to 5.92 in 2025. The initial spike in 2022 suggests a period of decreased investor confidence relative to earnings, while the subsequent stabilization and slight decline indicate a potential re-evaluation as EBITDA improved. The ratio in 2025 is closest to the initial value in 2021.
The interplay between Enterprise Value and EBITDA significantly impacted the EV/EBITDA ratio. The substantial decline in EBITDA in 2022 was the primary driver of the ratio’s increase, while the subsequent recovery in EBITDA contributed to its decrease in later years. The recent increase in Enterprise Value, coupled with continued EBITDA growth, suggests a more balanced valuation as of 2025.