Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
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).
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. | McDonald’s Corp. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in thousands) | |
Enterprise value (EV) | 248,532,593) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 13,861,200) |
Valuation Ratio | |
EV/EBITDA | 17.93 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Airbnb Inc. | 35.86 |
Booking Holdings Inc. | 25.68 |
Chipotle Mexican Grill Inc. | — |
Starbucks Corp. | 17.35 |
EV/EBITDA, Sector | |
Consumer Services | 19.40 |
EV/EBITDA, Industry | |
Consumer Discretionary | 24.67 |
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
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | ||||||
Enterprise value (EV)1 | 250,010,976) | 227,522,516) | 213,114,063) | 191,545,606) | 189,897,042) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 13,861,200) | 10,903,000) | 12,181,800) | 9,110,200) | 10,757,900) | |
Valuation Ratio | ||||||
EV/EBITDA3 | 18.04 | 20.87 | 17.49 | 21.03 | 17.65 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Airbnb Inc. | 40.65 | 36.61 | 338.63 | — | — | |
Booking Holdings Inc. | 19.60 | 19.20 | 45.39 | 73.17 | 10.49 | |
Chipotle Mexican Grill Inc. | 36.37 | 29.62 | 40.00 | 79.87 | 34.03 | |
Starbucks Corp. | 17.75 | 19.88 | 18.77 | 38.99 | 17.27 | |
EV/EBITDA, Sector | ||||||
Consumer Services | 20.97 | 22.11 | 25.46 | 59.23 | 16.04 | |
EV/EBITDA, Industry | ||||||
Consumer Discretionary | 17.94 | 19.55 | 21.16 | 29.01 | 17.75 |
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
= 250,010,976 ÷ 13,861,200 = 18.04
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. | McDonald’s Corp. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |