Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Corning Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
The financial trajectory from 2019 to 2023 is characterized by a significant peak in operational profitability during 2021, followed by a consistent downward trend. EBITDA exhibited notable volatility, increasing from 2,959 million US$ in 2019 to a high of 4,207 million US$ in 2021, before contracting to 2,514 million US$ by the end of 2023.
- EBITDA Trend Analysis
- A sharp increase in EBITDA is observed between 2020 and 2021, during which values rose from 2,430 million US$ to 4,207 million US$. This peak was followed by a two-year decline, with the 2023 figure representing a decrease of approximately 40% from the 2021 high, bringing the metric close to 2020 levels.
- Operational Cash Flow Proxies
- A substantial and consistent gap exists between EBIT and EBITDA throughout the period. In 2021, the difference between EBITDA (4,207 million US$) and EBIT (2,726 million US$) was 1,481 million US$, indicating significant non-cash charges related to depreciation and amortization, which is typical for capital-intensive operations.
- Correlation Between EBITDA and Net Income
- While EBITDA and net income follow a similar directional pattern, net income displays greater volatility. Between 2021 and 2023, EBITDA decreased by roughly 40%, whereas net income attributable to Corning Incorporated fell more precipitously from 1,906 million US$ to 581 million US$, suggesting that fixed costs, taxes, and interest expenses exerted a heavier impact on final profitability than on core operational earnings.
- Earnings Before Tax (EBT) and EBIT Convergence
- The narrow margin between EBIT and EBT across the five-year period suggests that interest expenses remained relatively stable and did not significantly deviate from the overall trend of operational performance.
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Enterprise Value to EBITDA Ratio, Current
Corning Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 34,821) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,514) |
| Valuation Ratio | |
| EV/EBITDA | 13.85 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | 29.11 |
| Arista Networks Inc. | 43.96 |
| Cisco Systems Inc. | 19.53 |
| Dell Technologies Inc. | 18.69 |
| Lumentum Holdings Inc. | — |
| Super Micro Computer Inc. | 7.63 |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | 37.37 |
| EV/EBITDA, Industry | |
| Information Technology | 50.01 |
Based on: 10-K (reporting date: 2023-12-31).
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
Corning Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 33,529) | 35,704) | 40,033) | 36,128) | 29,055) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,514) | 3,541) | 4,207) | 2,430) | 2,959) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 13.34 | 10.08 | 9.52 | 14.87 | 9.82 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Apple Inc. | 21.66 | 19.15 | 20.47 | — | — | |
| Arista Networks Inc. | 31.29 | 24.52 | 37.29 | — | — | |
| Cisco Systems Inc. | 12.16 | 10.52 | 15.05 | — | — | |
| Dell Technologies Inc. | 6.61 | 4.85 | 9.32 | — | — | |
| Lumentum Holdings Inc. | 23.03 | 11.47 | 7.83 | — | — | |
| Super Micro Computer Inc. | 16.77 | 10.50 | 11.19 | — | — | |
| EV/EBITDA, Sector | ||||||
| Technology Hardware & Equipment | 20.01 | 17.24 | 19.12 | — | — | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 23.55 | 18.32 | 20.52 | — | — | |
Based on: 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), 10-K (reporting date: 2019-12-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 33,529 ÷ 2,514 = 13.34
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA (EV/EBITDA) ratio demonstrates a volatile trajectory between 2019 and 2023, characterized by significant fluctuations driven by the divergence between market valuation and operational earnings. The ratio began at 9.82 in 2019 and concluded the period at 13.34 in 2023, reflecting a general expansion of the multiple despite intermediate contractions.
- Enterprise Value Trends
- Enterprise Value experienced a growth phase from 2019 to 2021, rising from 29,055 million US dollars to a peak of 40,033 million US dollars. Following this peak, a steady decline was observed over the subsequent two years, with the value receding to 33,529 million US dollars by December 31, 2023.
- EBITDA Performance
- Operational earnings exhibited high variability during the analyzed period. After an initial dip in 2020 to 2,430 million US dollars, EBITDA surged to a five-year high of 4,207 million US dollars in 2021. This was followed by a sustained downward trend, with earnings falling to 2,514 million US dollars by the end of 2023, representing a decrease of approximately 40% from the 2021 peak.
- EV/EBITDA Ratio Analysis
- The valuation multiple reached its highest point in 2020 at 14.87, resulting from the simultaneous increase in Enterprise Value and the contraction of EBITDA. A significant compression occurred in 2021, where the ratio fell to its lowest level of 9.52, driven by the rapid expansion of EBITDA. In the final two years, the ratio trended upward again, reaching 13.34 in 2023; this expansion indicates that the decline in EBITDA outperformed the reduction in Enterprise Value, leading to a higher valuation multiple relative to current earnings.
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