Stock Analysis on Net
Stock Analysis on Net

Verizon Communications Inc. (NYSE:VZ)

Enterprise Value to EBITDA (EV/EBITDA)

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

Verizon Communications Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income attributable to Verizon 17,801  19,265  15,528  30,101  13,127 
Add: Net income attributable to noncontrolling interest 547  523  511  449  481 
Add: Income tax expense 5,619  2,945  3,584  (9,956) 7,378 
Earnings before tax (EBT) 23,967  22,733  19,623  20,594  20,986 
Add: Interest expense 4,247  4,730  4,833  4,733  4,376 
Earnings before interest and tax (EBIT) 28,214  27,463  24,456  25,327  25,362 
Add: Depreciation and amortization expense 16,720  16,682  17,403  16,954  15,928 
Earnings before interest, tax, depreciation and amortization (EBITDA) 44,934  44,145  41,859  42,281  41,290 

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-21).

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.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 324,725 
Earnings before interest, tax, depreciation and amortization (EBITDA) 44,934 
Valuation Ratio
EV/EBITDA 7.23
Benchmarks
EV/EBITDA, Competitors1
AT&T Inc. 8.26
T-Mobile US Inc. 10.29
EV/EBITDA, Sector
Telecommunication Services 8.21
EV/EBITDA, Industry
Communication Services 16.89

Based on: 10-K (filing date: 2021-02-25).

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 342,126  351,042  339,807  313,605  308,219 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 44,934  44,145  41,859  42,281  41,290 
Valuation Ratio
EV/EBITDA3 7.61 7.95 8.12 7.42 7.46
Benchmarks
EV/EBITDA, Competitors4
AT&T Inc. 8.75 6.89 6.24 7.44 7.39
T-Mobile US Inc. 10.36 7.83 7.18 7.16 7.11
EV/EBITDA, Sector
Telecommunication Services 8.58 7.37 7.00 7.40 7.39
EV/EBITDA, Industry
Communication Services 14.37 11.54 10.28 11.92 10.70

Based on: 10-K (filing date: 2021-02-25), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-21).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 342,126 ÷ 44,934 = 7.61

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.’s EV/EBITDA ratio decreased from 2018 to 2019 and from 2019 to 2020.