Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Microsoft Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
| 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. | Microsoft Corp. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Microsoft Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 2,956,944) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 105,140) |
| Valuation Ratio | |
| EV/EBITDA | 28.12 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 17.99 |
| Adobe Inc. | 26.69 |
| International Business Machines Corp. | 14.24 |
| Intuit Inc. | 42.74 |
| Oracle Corp. | 21.14 |
| Palo Alto Networks Inc. | 103.27 |
| Salesforce Inc. | 28.37 |
| ServiceNow Inc. | 91.93 |
| Synopsys Inc. | 50.13 |
| EV/EBITDA, Sector | |
| Software & Services | 27.74 |
| EV/EBITDA, Industry | |
| Information Technology | 28.58 |
Based on: 10-K (reporting date: 2023-06-30).
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
Microsoft Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 2,410,213) | 2,021,362) | 2,093,369) | 1,487,741) | 999,078) | 775,247) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 105,140) | 100,239) | 85,134) | 68,423) | 58,056) | 49,468) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | 15.67 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | 13.79 | |
| Adobe Inc. | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | 37.27 | |
| International Business Machines Corp. | 14.41 | 22.17 | 12.53 | 12.28 | 10.23 | — | |
| Intuit Inc. | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | 31.25 | |
| Oracle Corp. | 21.80 | 17.12 | 13.78 | 11.54 | 11.83 | 9.50 | |
| Palo Alto Networks Inc. | 85.08 | 515.16 | — | 349.95 | 117.16 | — | |
| Salesforce Inc. | 38.42 | 38.91 | 33.92 | 49.78 | 56.71 | — | |
| ServiceNow Inc. | 96.48 | 104.30 | 147.45 | 220.91 | 187.17 | — | |
| Synopsys Inc. | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | 21.34 | |
| EV/EBITDA, Sector | |||||||
| Software & Services | 24.33 | 21.63 | 24.66 | 22.06 | 17.87 | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 23.37 | 18.28 | 20.37 | 19.53 | 14.42 | — | |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 2,410,213 ÷ 105,140 = 22.92
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. | Microsoft Corp. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |