Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

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

Oracle Corp., EBITDA calculation

US$ in millions

12 months ended:	May 31, 2026	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Net income	17,087)	12,443)	10,467)	8,503)	6,717)	13,746)
Add: Net income attributable to noncontrolling interest	222)	184)	186)	165)	184)	180)
Add: Income tax expense	2,467)	1,717)	1,274)	623)	932)	(747)
Earnings before tax (EBT)	19,776)	14,344)	11,927)	9,291)	7,833)	13,179)
Add: Interest expense	4,599)	3,578)	3,514)	3,505)	2,755)	2,496)
Earnings before interest and tax (EBIT)	24,375)	17,922)	15,441)	12,796)	10,588)	15,675)
Add: Depreciation	7,623)	3,867)	3,129)	2,526)	1,972)	1,537)
Add: Amortization of intangible assets	1,671)	2,307)	3,010)	3,582)	1,150)	1,379)
Earnings before interest, tax, depreciation and amortization (EBITDA)	33,669)	24,096)	21,580)	18,904)	13,710)	18,591)

Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).

The financial trajectory over the analyzed period is characterized by an initial contraction followed by a sustained and accelerating growth phase. Earnings before interest, tax, depreciation and amortization (EBITDA) exhibit a volatile start but trend toward significant expansion, particularly in the final projected period.

EBITDA Performance and Trends: A notable contraction in EBITDA occurred between May 2021 and May 2022, with values decreasing from 18,591 million to 13,710 million. Following this dip, a consistent recovery began in 2023, culminating in a substantial increase to 33,669 million by May 2026. This trajectory indicates a strong recovery in operational profitability and cash flow generation.
Depreciation and Amortization Impact: The variance between EBIT and EBITDA highlights a significant increase in non-cash charges. The gap between these two metrics expanded from approximately 2,916 million in 2021 to 9,294 million by 2026. This trend suggests a period of intensified capital expenditure or the integration of acquired assets, leading to higher depreciation and amortization expenses over time.
Operational Leverage and Net Income: Net income follows a pattern similar to EBITDA, reflecting the overall operational trend. After a low point of 6,717 million in 2022, net income grew steadily to 12,443 million in 2025, before experiencing a sharp acceleration to 17,087 million in 2026. This alignment suggests that the growth in operational earnings is effectively flowing through to the bottom line despite rising costs.
Interest and Tax Obligations: Analysis of the difference between EBIT and EBT reveals a gradual increase in interest expenses, which rose from 2,496 million in 2021 to 4,599 million by 2026. While the cost of debt has increased, the growth in operating income has been sufficient to absorb these costs, as evidenced by the consistent rise in Earnings before tax (EBT) from 2022 onward.

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Enterprise Value to EBITDA Ratio, Current

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	515,959)
Earnings before interest, tax, depreciation and amortization (EBITDA)	33,669)
Valuation Ratio
EV/EBITDA	15.32
Benchmarks
EV/EBITDA, Competitors¹
Accenture PLC	6.35
Adobe Inc.	9.02
AppLovin Corp.	39.37
Cadence Design Systems Inc.	56.41
CrowdStrike Holdings Inc.	1,053.64
Datadog Inc.	454.93
International Business Machines Corp.	18.32
Intuit Inc.	13.01
Microsoft Corp.	17.83
Palantir Technologies Inc.	176.34
Palo Alto Networks Inc.	135.27
Salesforce Inc.	10.33
ServiceNow Inc.	35.16
Synopsys Inc.	38.33
Workday Inc.	21.68
EV/EBITDA, Sector
Software & Services	20.90
EV/EBITDA, Industry
Information Technology	35.21

Based on: 10-K (reporting date: 2026-05-31).

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

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

	May 31, 2026	May 31, 2025	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	615,134)	677,116)	470,583)	412,025)	234,771)	256,153)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	33,669)	24,096)	21,580)	18,904)	13,710)	18,591)
Valuation Ratio
EV/EBITDA³	18.27	28.10	21.81	21.80	17.12	13.78
Benchmarks
EV/EBITDA, Competitors⁴
Accenture PLC	—	11.82	19.87	17.26	14.25	23.31
Adobe Inc.	—	12.68	22.06	34.07	22.32	35.44
AppLovin Corp.	—	32.17	47.75	20.05	14.17	30.05
Cadence Design Systems Inc.	—	42.96	42.25	55.61	42.11	39.61
CrowdStrike Holdings Inc.	567.94	247.69	262.20	—	—	—
Datadog Inc.	—	203.50	153.02	370.63	1,785.61	1,949.67
International Business Machines Corp.	—	15.14	22.90	14.41	22.17	12.53
Intuit Inc.	—	31.89	38.55	38.71	36.22	51.96
Microsoft Corp.	—	23.79	23.66	22.92	20.17	24.59
Palantir Technologies Inc.	—	184.77	551.39	175.93	—	—
Palo Alto Networks Inc.	—	64.12	84.17	85.08	515.19	—
Salesforce Inc.	13.62	24.64	31.64	38.31	38.88	33.83
ServiceNow Inc.	—	38.82	87.89	96.48	104.31	147.45
Synopsys Inc.	—	41.03	39.17	54.59	36.73	53.43
Workday Inc.	24.74	55.27	86.37	216.44	147.90	670.04
EV/EBITDA, Sector
Software & Services	—	25.34	27.48	25.41	22.68	26.04
EV/EBITDA, Industry
Information Technology	—	27.47	27.76	23.62	18.32	20.57

¹ See details »

² See details »

³ 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 615,134 ÷ 33,669 = 18.27

⁴ Click competitor name to see calculations.

The financial trajectory from 2021 to 2026 is characterized by a significant expansion in enterprise valuation followed by a marked improvement in operational profitability. A general upward trend in the valuation multiple is observed through 2025, ending with a sharp correction in 2026 as earnings growth began to outpace the growth in enterprise value.

Enterprise Value (EV): Enterprise value experienced a volatile but overall upward trend, rising from 256,153 million US$ in 2021 to a peak of 677,116 million US$ in 2025. A slight contraction occurred in 2022, and a subsequent decrease to 615,134 million US$ was recorded in 2026.
Earnings before interest, tax, depreciation and amortization (EBITDA): Operational earnings showed a recovery and growth pattern. After a decline to 13,710 million US$ in 2022, EBITDA grew consistently, reaching 24,096 million US$ by 2025 and accelerating significantly to 33,669 million US$ in 2026.
EV/EBITDA Ratio: The valuation multiple expanded from 13.78 in 2021 to 28.10 in 2025, indicating a period of multiple expansion where market valuation grew more rapidly than operational cash flows. This peak was followed by a substantial compression to 18.27 in 2026, resulting from the surge in EBITDA which effectively lowered the multiple despite the high enterprise value.