Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Item | Description | The company |
---|---|---|
EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | Arista Networks Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | 66,672,035) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,644,496) |
Valuation Ratio | |
EV/EBITDA | 40.54 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Apple Inc. | 23.95 |
Cisco Systems Inc. | 10.24 |
Enphase Energy Inc. | 26.42 |
Super Micro Computer Inc. | 18.07 |
EV/EBITDA, Sector | |
Technology Hardware & Equipment | 22.29 |
EV/EBITDA, Industry | |
Information Technology | 24.79 |
Based on: 10-K (reporting date: 2022-12-31).
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
Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Enterprise value (EV)1 | 40,318,962) | 36,582,874) | 20,863,198) | 14,367,210) | 18,071,517) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,644,496) | 981,213) | 774,021) | 895,119) | 319,173) | |
Valuation Ratio | ||||||
EV/EBITDA3 | 24.52 | 37.28 | 26.95 | 16.05 | 56.62 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Apple Inc. | 19.15 | 20.47 | 23.12 | 13.59 | 11.54 | |
Cisco Systems Inc. | 10.52 | 15.05 | 9.69 | 11.36 | 12.07 | |
Enphase Energy Inc. | 55.15 | 99.19 | 155.30 | 62.22 | 97.29 | |
Super Micro Computer Inc. | 10.49 | 11.20 | 10.64 | 7.73 | 10.02 | |
EV/EBITDA, Sector | ||||||
Technology Hardware & Equipment | 18.36 | 20.09 | 21.11 | 13.28 | 11.77 | |
EV/EBITDA, Industry | ||||||
Information Technology | 18.32 | 20.41 | 19.60 | 14.44 | 12.42 |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 40,318,962 ÷ 1,644,496 = 24.52
4 Click competitor name to see calculations.
Valuation ratio | Description | The company |
---|---|---|
EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | Arista Networks Inc. EV/EBITDA ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |