Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
ServiceNow Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| 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. | ServiceNow Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021. |
Enterprise Value to EBITDA Ratio, Current
ServiceNow Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 95,144 |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 749 |
| Valuation Ratio | |
| EV/EBITDA | 127.03 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 17.52 |
| Adobe Inc. | 25.85 |
| Automatic Data Processing Inc. | 13.89 |
| International Business Machines Corp. | 13.77 |
| Intuit Inc. | 36.53 |
| Mastercard Inc. | 27.32 |
| Microsoft Corp. | 22.10 |
| Oracle Corp. | 17.74 |
| PayPal Holdings Inc. | 8.24 |
| Salesforce Inc. | 33.23 |
| Visa Inc. | 24.01 |
| EV/EBITDA, Sector | |
| Software & Services | 21.18 |
| EV/EBITDA, Industry | |
| Information Technology | 17.98 |
Based on: 10-K (reporting date: 2021-12-31).
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
ServiceNow Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 110,442 | 114,500 | 65,992 | 42,540 | 27,523 | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 749 | 518 | 353 | 163 | 18 | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 147.45 | 220.91 | 187.17 | 260.48 | 1,506.85 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | 21.47 | 15.93 | 15.60 | 13.79 | 15.98 | |
| Adobe Inc. | 35.44 | 43.06 | 41.16 | 37.27 | 36.77 | |
| Automatic Data Processing Inc. | 14.05 | 8.32 | 12.32 | 11.88 | 7.32 | |
| International Business Machines Corp. | 12.53 | 12.28 | 10.23 | 9.54 | 10.76 | |
| Intuit Inc. | 51.96 | 35.70 | 34.27 | 31.25 | 21.97 | |
| Mastercard Inc. | 31.84 | 38.83 | 32.61 | 28.36 | 24.94 | |
| Microsoft Corp. | 24.59 | 21.74 | 17.21 | 15.67 | 15.00 | |
| Oracle Corp. | 13.78 | 11.54 | 11.83 | 9.50 | 12.73 | |
| PayPal Holdings Inc. | 19.34 | 43.02 | 27.91 | 24.59 | 22.50 | |
| Salesforce Inc. | 33.82 | 49.43 | 55.96 | 84.53 | 75.36 | |
| Visa Inc. | 24.81 | 29.80 | 24.56 | 22.59 | 20.10 | |
| EV/EBITDA, Sector | ||||||
| Software & Services | 24.20 | 23.98 | 19.68 | 17.30 | 16.71 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 20.56 | 20.64 | 15.56 | 13.28 | 13.33 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 110,442 ÷ 749 = 147.45
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. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |