Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Oracle Corp. (NYSE:ORCL)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level


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

Oracle Corp., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Net income 10,135  11,083  3,825  9,335  8,901  9,938 
Add: Net income attributable to noncontrolling interest 164  152  135  118  116  113 
Add: Income tax expense 1,928  1,185  9,066  2,182  2,541  2,896 
Earnings before tax (EBT) 12,227  12,420  13,026  11,635  11,558  12,947 
Add: Interest expense 1,995  2,082  2,025  1,798  1,467  1,143 
Earnings before interest and tax (EBIT) 14,222  14,502  15,051  13,433  13,025  14,090 
Add: Depreciation 1,382  1,230  1,165  1,000  871  712 
Add: Amortization of intangible assets 1,586  1,689  1,620  1,451  1,638  2,149 
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,190  17,421  17,836  15,884  15,534  16,951 

Based on: 10-K (filing date: 2020-06-22), 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).

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 decreased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 204,712 
Earnings before interest, tax, depreciation and amortization (EBITDA) 17,190 
Valuation Ratio
EV/EBITDA 11.91
Benchmarks
EV/EBITDA, Competitors1
Adobe Inc. 50.76
Alphabet Inc. 17.92
Autodesk Inc. 108.52
Facebook Inc. 20.56
International Business Machines Corp. 9.16
Intuit Inc. 34.00
Microsoft Corp. 26.15
salesforce.com inc. 55.69
ServiceNow Inc. 220.68
EV/EBITDA, Sector
Software & Computer Services 21.78
EV/EBITDA, Industry
Technology 19.01

Based on: 10-K (filing date: 2020-06-22).

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, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 198,329  206,124  169,425  202,154  153,181  166,064 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 17,190  17,421  17,836  15,884  15,534  16,951 
Valuation Ratio
EV/EBITDA3 11.54 11.83 9.50 12.73 9.86 9.80
Benchmarks
EV/EBITDA, Competitors4
Adobe Inc. 41.16 37.27 36.77 28.22 33.16
Alphabet Inc. 17.07 15.69 19.10 15.51 16.21
Autodesk Inc. 69.31 335.51 75.90 52.55
Facebook Inc. 17.76 14.64 21.98 23.48 35.80
International Business Machines Corp. 10.23 9.54 10.76 11.72 7.85
Intuit Inc. 34.27 31.25 21.97 19.58 22.81
Microsoft Corp. 17.10 15.58 14.93 13.70 12.37
salesforce.com inc. 49.30 55.87 84.25 74.85 68.47 121.75
ServiceNow Inc. 187.17 260.48 1,506.85
EV/EBITDA, Sector
Software & Computer Services 17.73 15.68 17.79 15.60 14.87
EV/EBITDA, Industry
Technology 15.05 12.98 14.12 12.27 10.69

Based on: 10-K (filing date: 2020-06-22), 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).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 198,329 ÷ 17,190 = 11.54

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 increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.