Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 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), 10-K (reporting date: 2017-12-31).
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. | International Business Machines Corp. EBITDA decreased from 2019 to 2020 and from 2020 to 2021. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 163,813 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 12,428 |
Valuation Ratio | |
EV/EBITDA | 13.18 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Accenture PLC | 17.12 |
Adobe Inc. | 28.21 |
Automatic Data Processing Inc. | 13.39 |
Fidelity National Information Services Inc. | 14.61 |
Intuit Inc. | 33.27 |
Mastercard Inc. | 28.81 |
Microsoft Corp. | 22.74 |
Oracle Corp. | 11.87 |
PayPal Holdings Inc. | 9.43 |
salesforce.com inc. | 30.93 |
ServiceNow Inc. | 107.77 |
Visa Inc. | 24.11 |
EV/EBITDA, Sector | |
Software & Services | 21.21 |
EV/EBITDA, Industry | |
Information Technology | 18.75 |
Based on: 10-K (reporting date: 2021-12-31).
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, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||
Enterprise value (EV)1 | 155,684 | 155,259 | 179,930 | 158,056 | 178,322 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 12,428 | 12,642 | 17,594 | 16,562 | 16,573 | |
Valuation Ratio | ||||||
EV/EBITDA3 | 12.53 | 12.28 | 10.23 | 9.54 | 10.76 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Accenture PLC | 21.47 | 15.93 | 15.60 | 13.79 | 15.98 | |
Adobe Inc. | 35.44 | 43.06 | 41.16 | 37.27 | 36.77 | |
Automatic Data Processing Inc. | 14.05 | 8.32 | 12.32 | 11.88 | 7.32 | |
Fidelity National Information Services Inc. | 14.04 | 22.62 | 34.66 | 14.84 | 14.27 | |
Intuit Inc. | 51.96 | 35.70 | 34.27 | 31.25 | 21.97 | |
Mastercard Inc. | 31.84 | 38.83 | 32.61 | 28.36 | 24.94 | |
Microsoft Corp. | 24.59 | 21.74 | 17.21 | 15.67 | 15.00 | |
Oracle Corp. | 13.78 | 11.54 | 11.83 | 9.50 | 12.73 | |
PayPal Holdings Inc. | 19.34 | 43.02 | 27.91 | 24.59 | 22.50 | |
salesforce.com inc. | 33.82 | 49.43 | 55.96 | 84.53 | 75.36 | |
ServiceNow Inc. | 147.45 | 220.91 | 187.17 | 260.48 | 1,506.85 | |
Visa Inc. | 24.81 | 29.80 | 24.56 | 22.59 | 20.10 | |
EV/EBITDA, Sector | ||||||
Software & Services | 23.93 | 23.94 | 20.01 | 17.24 | 16.65 | |
EV/EBITDA, Industry | ||||||
Information Technology | 20.48 | 20.67 | 15.74 | 13.30 | 13.34 |
Based on: 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), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 155,684 ÷ 12,428 = 12.53
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. | International Business Machines Corp. EV/EBITDA ratio increased from 2019 to 2020 and from 2020 to 2021. |