Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Walt Disney Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).
- Net Income (Loss) Attributable to The Walt Disney Company
- The net income showed significant fluctuation over the periods analyzed. In 2019, the company reported a strong profit of 11,054 million USD. This was followed by a sharp decline in 2020, resulting in a loss of 2,864 million USD. The subsequent years showed recovery with positive earnings of 1,995 million USD in 2021, increasing to 3,145 million USD in 2022. However, there was a slight dip to 2,354 million USD in 2023 before rising again to 4,972 million USD in 2024, indicating an overall recovery trend after the 2020 downturn.
- Earnings Before Tax (EBT)
- EBT followed a similar pattern to net income, with a high of 13,944 million USD in 2019, followed by a decline to a negative 1,743 million USD in 2020. From 2021 onwards, there is clear improvement with EBT climbing from 2,561 million USD in 2021 to 5,285 million USD in 2022. It slightly decreased to 4,769 million USD in 2023 but rose noticeably again to 7,569 million USD in 2024, highlighting enhanced profitability after 2020.
- Earnings Before Interest and Tax (EBIT)
- EBIT reflected resilience in the face of variability. Starting at 15,190 million USD in 2019, it faced a dramatic fall to a near breakeven negative 96 million USD in 2020. Recovery was evident as EBIT grew to 4,107 million USD in 2021, and further increased markedly to 6,834 million USD in 2022. While it slightly declined to 6,742 million USD in 2023, a subsequent increase to 9,639 million USD in 2024 indicates robust operational performance improvement.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated the strongest upward trend among the profit-related metrics. Despite a notable drop from 19,350 million USD in 2019 to 5,249 million USD in 2020, EBITDA exhibited consistent growth year-over-year afterward: rising to 9,218 million USD in 2021, 11,997 million USD in 2022, and slightly increasing to 12,111 million USD in 2023. The figure rose further to 14,629 million USD in 2024, underscoring a steady improvement in operating cash flow generation capacity after the initial decline.
Enterprise Value to EBITDA Ratio, Current
Walt Disney Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 265,916) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 14,629) |
| Valuation Ratio | |
| EV/EBITDA | 18.18 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 15.52 |
| Comcast Corp. | 6.01 |
| Meta Platforms Inc. | 20.10 |
| Netflix Inc. | 21.01 |
| Take-Two Interactive Software Inc. | — |
| EV/EBITDA, Sector | |
| Media & Entertainment | 16.51 |
| EV/EBITDA, Industry | |
| Communication Services | 14.10 |
Based on: 10-K (reporting date: 2024-09-28).
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
Walt Disney Co., historical EV/EBITDA calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 242,439) | 210,045) | 213,557) | 318,276) | 315,627) | 311,557) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 14,629) | 12,111) | 11,997) | 9,218) | 5,249) | 19,350) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 16.57 | 17.34 | 17.80 | 34.53 | 60.13 | 16.10 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Alphabet Inc. | 16.81 | 17.01 | 14.66 | 18.08 | 20.84 | — | |
| Comcast Corp. | 5.84 | 7.10 | 9.60 | 8.45 | 10.36 | — | |
| Meta Platforms Inc. | 19.48 | 19.72 | 12.19 | 10.85 | 17.31 | — | |
| Netflix Inc. | 16.03 | 11.85 | 8.40 | 9.51 | 16.57 | — | |
| Take-Two Interactive Software Inc. | — | 38.51 | 14.86 | 19.06 | 19.30 | — | |
| EV/EBITDA, Sector | |||||||
| Media & Entertainment | 16.32 | 15.63 | 12.92 | 14.63 | 18.68 | — | |
| EV/EBITDA, Industry | |||||||
| Communication Services | 13.87 | 12.96 | 11.75 | 11.59 | 14.52 | — | |
Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 242,439 ÷ 14,629 = 16.57
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value remained relatively stable from 2019 through 2021, fluctuating slightly between approximately $311.6 billion and $318.3 billion. However, there was a notable decline in EV beginning in 2022, dropping to around $213.6 billion and sustaining a similar lower level through 2023. In 2024, the EV showed a recovery, increasing to approximately $242.4 billion, though it did not return to the earlier peak levels observed in 2019-2021.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA exhibited significant volatility over the analyzed period. The figure started at $19.35 billion in 2019 but declined sharply to $5.25 billion in 2020. In the following years, EBITDA demonstrated a recovery trend, growing to $9.22 billion in 2021, then further increasing steadily in 2022 and 2023 to approximately $12.0 billion and $12.1 billion respectively. The upward trajectory continued into 2024, with EBITDA reaching $14.6 billion, indicating improved operating performance.
- EV/EBITDA Ratio
- The EV to EBITDA ratio showed considerable fluctuation reflective of the volatility in EBITDA and relative stability of EV initially. The ratio was 16.1 in 2019, surged dramatically to over 60 in 2020 likely due to the sharp EBITDA decline, then decreased to about 34.5 in 2021 as EBITDA recovered. From 2022 onward, the ratio stabilized in the range of approximately 16.6 to 17.8, a level comparable to that prior to the pandemic-induced disruption, signaling a normalization in valuation relative to earnings.