Enterprise Value to EBITDA (EV/EBITDA)
Intermediate level
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
ServiceNow Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).
| 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. | ServiceNow Inc.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019. |
Enterprise Value to EBITDA Ratio, Current
ServiceNow Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 78,418,994 |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 352,582 |
| Valuation Ratio | |
| EV/EBITDA | 222.41 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Adobe Inc. | 52.96 |
| Alphabet Inc. | 17.59 |
| Autodesk Inc. | 113.01 |
| Facebook Inc. | 20.61 |
| International Business Machines Corp. | 9.14 |
| Intuit Inc. | 36.98 |
| Microsoft Corp. | 26.46 |
| Oracle Corp. | 11.80 |
| salesforce.com inc. | 58.17 |
| EV/EBITDA, Sector | |
| Software & Computer Services | 21.92 |
| EV/EBITDA, Industry | |
| Technology | 18.87 |
Based on: 10-K (filing date: 2020-02-20).
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
ServiceNow Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 65,991,898 | 42,539,740 | 27,522,585 | 14,211,010 | 8,414,708 | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 352,582 | 163,313 | 18,265 | (333,691) | (101,559) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 187.17 | 260.48 | 1,506.85 | — | — | |
| 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. | 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 | |
| Oracle Corp. | 11.83 | 9.50 | 12.73 | 9.86 | 9.80 | |
| salesforce.com inc. | 55.87 | 84.25 | 74.85 | 68.47 | 121.75 | |
| EV/EBITDA, Sector | ||||||
| Software & Computer Services | 17.73 | 15.68 | 17.79 | 15.60 | 14.87 | |
| EV/EBITDA, Industry | ||||||
| Technology | 15.02 | 12.97 | 14.06 | 12.25 | 10.67 | |
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-25).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 65,991,898 ÷ 352,582 = 187.17
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. | ServiceNow Inc.’s EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019. |