Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

This company has been moved to the archive! The financial data has not been updated since July 31, 2023.

Enterprise Value to EBITDA (EV/EBITDA) 

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

Activision Blizzard Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 1,513 2,699 2,197 1,503 1,813
Add: Income tax expense 231 465 419 130 64
Earnings before tax (EBT) 1,744 3,164 2,616 1,633 1,877
Add: Interest expense from debt 108 108 99 90 140
Earnings before interest and tax (EBIT) 1,852 3,272 2,715 1,723 2,017
Add: Depreciation and amortization 106 116 197 328 509
Add: Amortization of capitalized software development costs 213 324 249 225 489
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,171 3,712 3,161 2,276 3,015

Based on: 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), 10-K (reporting date: 2018-12-31).

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. Activision Blizzard Inc. EBITDA increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Activision Blizzard Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 64,602
Earnings before interest, tax, depreciation and amortization (EBITDA) 2,171
Valuation Ratio
EV/EBITDA 29.76
Benchmarks
EV/EBITDA, Competitors1
Alphabet Inc. 21.17
Comcast Corp. 6.58
Meta Platforms Inc. 23.39
Netflix Inc. 17.95
Walt Disney Co. 17.21
EV/EBITDA, Sector
Media & Entertainment 23.93
EV/EBITDA, Industry
Communication Services 19.58

Based on: 10-K (reporting date: 2022-12-31).

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

Activision Blizzard Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 52,063 56,646 69,660 41,750 30,634
Earnings before interest, tax, depreciation and amortization (EBITDA)2 2,171 3,712 3,161 2,276 3,015
Valuation Ratio
EV/EBITDA3 23.98 15.26 22.04 18.34 10.16
Benchmarks
EV/EBITDA, Competitors4
Alphabet Inc. 14.66 18.08 20.84 17.39
Comcast Corp. 9.60 8.45 10.36 8.66
Meta Platforms Inc. 12.19 10.85 17.31 17.76
Netflix Inc. 8.40 9.51 16.57 13.35
Walt Disney Co. 17.80 34.53 60.13 16.10
EV/EBITDA, Sector
Media & Entertainment 12.91 14.62 18.67 14.92
EV/EBITDA, Industry
Communication Services 11.74 11.57 14.51 11.51

Based on: 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), 10-K (reporting date: 2018-12-31).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 52,063 ÷ 2,171 = 23.98

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. Activision Blizzard Inc. EV/EBITDA ratio decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.