Enterprise Value to EBITDA (EV/EBITDA)
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- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Oracle Corp., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-05-31).
- Net Income
- Net income experienced an initial increase from 10,135 million US dollars in 2020 to 13,746 million in 2021, followed by a significant decline to 6,717 million in 2022. Subsequently, it showed a recovery trend with a gradual increase reaching 8,503 million in 2023, 10,467 million in 2024, and further rising to 12,443 million in 2025. Overall, net income demonstrates volatility with a sharp dip in 2022 but a strong recovery through 2025.
- Earnings Before Tax (EBT)
- EBT figures followed a pattern similar to net income, with an initial rise from 12,227 million in 2020 to 13,179 million in 2021, before declining to 7,833 million in 2022. After this drop, EBT gradually increased each year, achieving 9,291 million in 2023, 11,927 million in 2024, and reaching 14,344 million in 2025. This indicates a recovery and growth beyond prior highs by 2025.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed positive growth from 14,222 million in 2020 to 15,675 million in 2021, then declined to 10,588 million in 2022, marking a reduction in operating profitability. However, EBIT recovered steadily in subsequent years, increasing to 12,796 million in 2023, 15,441 million in 2024, and achieved the highest value within the timeframe at 17,922 million in 2025, highlighting improved operational efficiency and profitability momentum.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA followed a pattern characterized by a rise from 17,190 million in 2020 to 18,591 million in 2021, dropping to 13,710 million in 2022. The figure rebounded strongly to 18,904 million in 2023, then increased further to 21,580 million in 2024, and peaked at 24,096 million in 2025. The strong recovery and upward trend in EBITDA suggests robust earnings capacity before non-cash charges and a solid underlying business performance.
Enterprise Value to EBITDA Ratio, Current
Oracle Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | |
| Adobe Inc. | |
| Cadence Design Systems Inc. | |
| CrowdStrike Holdings Inc. | |
| Fair Isaac Corp. | |
| International Business Machines Corp. | |
| Intuit Inc. | |
| Microsoft Corp. | |
| Palantir Technologies Inc. | |
| Palo Alto Networks Inc. | |
| Salesforce Inc. | |
| ServiceNow Inc. | |
| Synopsys Inc. | |
| Workday Inc. | |
| EV/EBITDA, Sector | |
| Software & Services | |
| EV/EBITDA, Industry | |
| Information Technology | |
Based on: 10-K (reporting date: 2025-05-31).
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, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | |||||||
| Adobe Inc. | |||||||
| Cadence Design Systems Inc. | |||||||
| CrowdStrike Holdings Inc. | |||||||
| Fair Isaac Corp. | |||||||
| International Business Machines Corp. | |||||||
| Intuit Inc. | |||||||
| Microsoft Corp. | |||||||
| Palantir Technologies Inc. | |||||||
| Palo Alto Networks Inc. | |||||||
| Salesforce Inc. | |||||||
| ServiceNow Inc. | |||||||
| Synopsys Inc. | |||||||
| Workday Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Software & Services | |||||||
| EV/EBITDA, Industry | |||||||
| Information Technology | |||||||
Based on: 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), 10-K (reporting date: 2020-05-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
-
The enterprise value exhibits a generally upward trend over the observed periods, starting at $198,329 million in 2020 and increasing significantly to $677,116 million by 2025. Notably, there was a dip from 2021 to 2022, where EV decreased from $256,153 million to $234,771 million. However, from 2022 onwards, EV increased sharply, more than doubling by 2025 compared to the 2022 figure.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
-
EBITDA shows some volatility within the same period. It increased moderately from 2020 ($17,190 million) to 2021 ($18,591 million) but then declined sharply in 2022 to $13,710 million. Following 2022, EBITDA resumed an upward trajectory, rising to $18,904 million in 2023, $21,580 million in 2024, and reaching $24,096 million in 2025. Overall, EBITDA in 2025 is higher than the level observed at the start of the period.
- EV/EBITDA Ratio
-
The EV/EBITDA multiple has increased consistently across the observed years, starting at 11.54 in 2020 and rising to 28.1 by 2025. This indicates that the enterprise value is growing at a faster pace relative to EBITDA, reflecting potentially higher market valuations or increased investor expectations relative to earnings generation. The most pronounced jumps in the ratio appear between 2022 and 2023, and again from 2024 to 2025, consistent with the rapid EV growth and recovery in EBITDA.
- Summary Insight
-
The data suggest a dynamic financial environment with enterprise value and EBITDA showing periods of both decline and growth. The substantial increase in enterprise value, especially from 2023 onwards, alongside improving EBITDA, indicates strengthening market confidence and operational improvements. The rising EV/EBITDA ratio may point to a market premium being placed on the company beyond its earnings performance, which could warrant further investigation into market expectations or strategic developments during this timeframe.