Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
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. | Nike Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 178,339 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,754 |
Valuation Ratio | |
EV/EBITDA | 23.00 |
Benchmarks | |
EV/EBITDA, Industry | |
Consumer Discretionary | 16.46 |
Based on: 10-K (reporting date: 2021-05-31).
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
Based on: 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 248,616 ÷ 7,754 = 32.06
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. | Nike Inc. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |