Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Salesforce Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
| 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. | Salesforce Inc. EBITDA decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Enterprise Value to EBITDA Ratio, Current
Salesforce Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 261,802) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 9,163) |
| Valuation Ratio | |
| EV/EBITDA | 28.57 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 18.07 |
| Adobe Inc. | 26.33 |
| International Business Machines Corp. | 14.27 |
| Intuit Inc. | 42.83 |
| Microsoft Corp. | 27.89 |
| Oracle Corp. | 20.92 |
| Palo Alto Networks Inc. | 103.47 |
| ServiceNow Inc. | 90.72 |
| Synopsys Inc. | 49.72 |
| EV/EBITDA, Sector | |
| Software & Services | 27.57 |
| EV/EBITDA, Industry | |
| Information Technology | 28.01 |
Based on: 10-K (reporting date: 2024-01-31).
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
Salesforce Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 290,863) | 181,834) | 196,365) | 187,123) | 146,907) | 118,576) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 9,163) | 4,733) | 5,046) | 5,517) | 2,951) | 2,091) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 31.74 | 38.42 | 38.91 | 33.92 | 49.78 | 56.71 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | — | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | |
| Adobe Inc. | — | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | |
| International Business Machines Corp. | — | 14.41 | 22.17 | 12.53 | 12.28 | 10.23 | |
| Intuit Inc. | — | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | |
| Microsoft Corp. | — | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | |
| Oracle Corp. | — | 21.80 | 17.12 | 13.78 | 11.54 | 11.83 | |
| Palo Alto Networks Inc. | — | 85.08 | 515.16 | — | 349.95 | 117.16 | |
| ServiceNow Inc. | — | 96.48 | 104.30 | 147.45 | 220.91 | 187.17 | |
| Synopsys Inc. | — | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | |
| EV/EBITDA, Sector | |||||||
| Software & Services | — | 24.33 | 21.63 | 24.66 | 22.06 | 17.87 | |
| EV/EBITDA, Industry | |||||||
| Information Technology | — | 23.37 | 18.28 | 20.37 | 19.53 | 14.42 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 290,863 ÷ 9,163 = 31.74
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. | Salesforce Inc. EV/EBITDA ratio decreased from 2022 to 2023 and from 2023 to 2024. |