Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

Verizon Communications Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Verizon 11,614 21,256 22,065 17,801 19,265
Add: Net income attributable to noncontrolling interest 481 492 553 547 523
Add: Income tax expense 4,892 6,523 6,802 5,619 2,945
Earnings before tax (EBT) 16,987 28,271 29,420 23,967 22,733
Add: Interest expense 5,524 3,613 3,485 4,247 4,730
Earnings before interest and tax (EBIT) 22,511 31,884 32,905 28,214 27,463
Add: Depreciation and amortization expense 17,624 17,099 16,206 16,720 16,682
Earnings before interest, tax, depreciation and amortization (EBITDA) 40,135 48,983 49,111 44,934 44,145

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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. Verizon Communications Inc. EBITDA decreased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Verizon Communications Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 326,389
Earnings before interest, tax, depreciation and amortization (EBITDA) 40,135
Valuation Ratio
EV/EBITDA 8.13
Benchmarks
EV/EBITDA, Competitors1
AT&T Inc. 5.97
T-Mobile US Inc. 9.80
EV/EBITDA, Sector
Telecommunication Services 7.66
EV/EBITDA, Industry
Communication Services 13.20

Based on: 10-K (reporting date: 2023-12-31).

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

Verizon Communications Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 316,972 317,390 373,185 342,126 351,042
Earnings before interest, tax, depreciation and amortization (EBITDA)2 40,135 48,983 49,111 44,934 44,145
Valuation Ratio
EV/EBITDA3 7.90 6.48 7.60 7.61 7.95
Benchmarks
EV/EBITDA, Competitors4
AT&T Inc. 5.84 13.24 5.09 8.75 6.89
T-Mobile US Inc. 9.74 12.39 9.78 10.37 7.84
EV/EBITDA, Sector
Telecommunication Services 7.51 9.38 6.75 8.58 7.37
EV/EBITDA, Industry
Communication Services 12.58 11.45 11.49 14.32 11.53

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 316,972 ÷ 40,135 = 7.90

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. Verizon Communications Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.