Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Fair Isaac Corp., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).
- Net income
- The net income demonstrates a positive and consistent upward trend over the six-year period. Starting from approximately 192 million US dollars in 2019, it increased steadily each year, reaching over 512 million US dollars by 2024. Notably, the growth accelerates after 2020, with a substantial increase observed between 2020 and 2021, followed by continued growth through to 2024.
- Earnings before tax (EBT)
- The earnings before tax exhibit a similar pattern of growth, rising from about 216 million US dollars in 2019 to 642 million US dollars in 2024. The increase is particularly pronounced from 2020 onwards, with a notable jump between 2020 and 2021. The upward trajectory remains strong through 2024, suggesting improving profitability before taxation.
- Earnings before interest and tax (EBIT)
- EBIT also follows a robust growth trend, moving from around 256 million US dollars in 2019 to nearly 748 million US dollars in 2024. The increase is steady and consistent, with a slight acceleration starting in 2021. This indicates improved operational performance and efficiency over the observed years.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA shows a strong growth trajectory as well, growing from approximately 287 million US dollars in 2019 to over 761 million US dollars in 2024. The rate of growth remains consistent, reflecting enhanced earnings capacity and potentially growing cash flow from operations. This metric's increase supports the impression of improving financial health and operational strength.
- Overall Trends and Insights
- Across all four financial items—Net Income, EBT, EBIT, and EBITDA—there is a clear and consistent upward trend from 2019 through 2024. The significant increases beginning in 2021 may indicate the realization of strategic initiatives or favorable market conditions boosting profitability and operational efficiency. The proportional growth in EBITDA and EBIT suggests that earnings growth is supported by operational improvements rather than purely accounting adjustments. The consistent rise in net income and earnings metrics points to strengthening financial performance and increasing shareholder value.
Enterprise Value to EBITDA Ratio, Current
Fair Isaac Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 46,269,375) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 761,490) |
| Valuation Ratio | |
| EV/EBITDA | 60.76 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 16.19 |
| Adobe Inc. | 20.24 |
| Cadence Design Systems Inc. | 49.51 |
| CrowdStrike Holdings Inc. | 415.15 |
| International Business Machines Corp. | 25.55 |
| Intuit Inc. | 47.49 |
| Microsoft Corp. | 27.82 |
| Oracle Corp. | 28.33 |
| Palantir Technologies Inc. | 643.83 |
| Palo Alto Networks Inc. | 104.15 |
| Salesforce Inc. | 22.70 |
| ServiceNow Inc. | 88.21 |
| Synopsys Inc. | 39.52 |
| Workday Inc. | 54.08 |
| EV/EBITDA, Sector | |
| Software & Services | 31.36 |
| EV/EBITDA, Industry | |
| Information Technology | 33.89 |
Based on: 10-K (reporting date: 2024-09-30).
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
Fair Isaac Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 52,971,217) | 24,966,250) | 12,803,897) | 11,695,394) | 14,117,513) | 10,327,169) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 761,490) | 663,808) | 560,741) | 538,826) | 329,544) | 287,436) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 69.56 | 37.61 | 22.83 | 21.71 | 42.84 | 35.93 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | 19.87 | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | |
| Adobe Inc. | 22.06 | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | |
| Cadence Design Systems Inc. | 42.25 | 55.61 | 42.11 | 39.61 | 45.75 | — | |
| CrowdStrike Holdings Inc. | 262.20 | — | — | — | — | — | |
| International Business Machines Corp. | 22.90 | 14.41 | 22.17 | 12.53 | 12.28 | — | |
| Intuit Inc. | 38.55 | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | |
| Microsoft Corp. | 23.66 | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | |
| Oracle Corp. | 21.81 | 21.80 | 17.12 | 13.78 | 11.54 | — | |
| Palantir Technologies Inc. | 551.39 | 175.93 | — | — | — | — | |
| Palo Alto Networks Inc. | 84.17 | 85.08 | 515.19 | — | 349.99 | 117.18 | |
| Salesforce Inc. | 31.64 | 38.31 | 38.88 | 33.83 | 49.45 | — | |
| ServiceNow Inc. | 87.89 | 96.48 | 104.30 | 147.45 | 220.91 | — | |
| Synopsys Inc. | 39.17 | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | |
| Workday Inc. | 86.37 | 216.44 | 147.90 | 670.04 | — | — | |
| EV/EBITDA, Sector | |||||||
| Software & Services | 27.25 | 25.27 | 22.55 | 25.66 | 23.30 | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 27.64 | 23.56 | 18.28 | 20.46 | 19.69 | — | |
Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 52,971,217 ÷ 761,490 = 69.56
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows an overall upward trend from 2019 to 2024. It increased steadily from approximately 10.3 billion USD in 2019 to about 14.1 billion USD in 2020, followed by a decrease to roughly 11.7 billion USD in 2021. From 2021 onwards, EV increased again consistently, reaching nearly 12.8 billion USD in 2022, then experiencing a significant rise to approximately 24.97 billion USD in 2023, and further more than doubling to nearly 52.97 billion USD by 2024.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA has shown a continuous positive trend throughout the years. Starting at around 287 million USD in 2019, it rose moderately to about 330 million USD in 2020. There was a considerable increase in 2021 to approximately 539 million USD, followed by further growth to 561 million USD in 2022. This upward movement continued with EBITDA reaching 664 million USD in 2023 and further increasing to about 761 million USD in 2024, indicating improved operating profitability over time.
- EV/EBITDA Ratio
- The EV/EBITDA ratio displayed significant volatility across the observed period. Initially high at roughly 35.93 in 2019, it rose to an even higher 42.84 in 2020. The ratio then decreased substantially to 21.71 in 2021 and remained relatively stable at 22.83 in 2022. However, there was a sharp increase in 2023 to approximately 37.61, followed by a dramatic surge to 69.56 in 2024. This significant increase in the EV/EBITDA ratio in the latest year suggests that the enterprise value grew much faster than EBITDA, possibly indicating market expectations of higher future growth or an overvaluation relative to current earnings.