Microsoft Excel LibreOffice Calc

Oracle Corp. (ORCL)


Enterprise Value to EBITDA (EV/EBITDA)

Medium level of difficulty


Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Oracle Corp., EBITDA calculation

US$ in millions

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12 months ended May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Net income 11,083  3,825  9,335  8,901  9,938  10,955 
Add: Net income attributable to noncontrolling interest 152  135  118  116  113  98 
Add: Income tax expense 1,185  9,066  2,182  2,541  2,896  2,749 
Earnings before tax (EBT) 12,420  13,026  11,635  11,558  12,947  13,802 
Add: Interest expense 2,082  2,025  1,798  1,467  1,143  914 
Earnings before interest and tax (EBIT) 14,502  15,051  13,433  13,025  14,090  14,716 
Add: Depreciation 1,230  1,165  1,000  871  712  608 
Add: Amortization of intangible assets 1,689  1,620  1,451  1,638  2,149  2,300 
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,421  17,836  15,884  15,534  16,951  17,624 

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

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. Oracle Corp.’s EBITDA increased from 2017 to 2018 but then slightly declined from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

Oracle Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 203,952 
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,421 
Valuation Ratio
EV/EBITDA 11.71
Benchmarks
EV/EBITDA, Competitors1
Adobe Inc. 45.33
Alphabet Inc. 18.20
Facebook Inc. 17.76
International Business Machines Corp. 9.23
Intuit Inc. 32.30
Microsoft Corp. 18.70
salesforce.com inc. 67.95
EV/EBITDA, Sector
Software & Computer Services 18.99
EV/EBITDA, Industry
Technology 16.18

Based on: 10-K (filing date: 2019-06-21).

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

Oracle Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 206,124  169,425  202,154  153,181  166,064  164,789 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 17,421  17,836  15,884  15,534  16,951  17,624 
Valuation Ratio
EV/EBITDA3 11.83 9.50 12.73 9.86 9.80 9.35
Benchmarks
EV/EBITDA, Competitors4
Adobe Inc. 37.27 36.77 28.22 33.16 45.46
Alphabet Inc. 15.69 19.10 15.51 16.21 13.43
Facebook Inc. 14.64 21.98 23.48 35.80 33.57
International Business Machines Corp. 9.54 10.76 11.72 7.85 7.83
Intuit Inc. 34.27 31.25 21.97 19.58 22.81 14.64
Microsoft Corp. 17.10 15.58 14.93 13.70 12.37 8.70
salesforce.com inc. 56.40 86.78 77.91 71.31 137.39 449.68
EV/EBITDA, Sector
Software & Computer Services 15.22 17.39 15.34 14.68 11.73
EV/EBITDA, Industry
Technology 13.38 14.18 12.15 10.74 10.57

Based on: 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-22), 10-K (filing date: 2015-06-25), 10-K (filing date: 2014-06-26).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 206,124 ÷ 17,421 = 11.83

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. Oracle Corp.’s EV/EBITDA ratio declined from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.