Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Adobe Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
| 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. | Adobe Inc. EBITDA increased from 2022 to 2023 and from 2023 to 2024. |
Enterprise Value to EBITDA Ratio, Current
Adobe Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 166,581) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,957) |
| Valuation Ratio | |
| EV/EBITDA | 20.94 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 16.97 |
| Cadence Design Systems Inc. | 42.94 |
| CrowdStrike Holdings Inc. | 296.20 |
| International Business Machines Corp. | 22.03 |
| Intuit Inc. | 37.98 |
| Microsoft Corp. | 21.85 |
| Oracle Corp. | 22.50 |
| Palantir Technologies Inc. | 395.87 |
| Palo Alto Networks Inc. | 88.98 |
| Salesforce Inc. | 23.42 |
| ServiceNow Inc. | 71.50 |
| Synopsys Inc. | 35.23 |
| Workday Inc. | 55.67 |
| EV/EBITDA, Sector | |
| Software & Services | 25.08 |
| EV/EBITDA, Industry | |
| Information Technology | 28.26 |
Based on: 10-K (reporting date: 2024-11-29).
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
Adobe Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Nov 29, 2024 | Dec 1, 2023 | Dec 2, 2022 | Dec 3, 2021 | Nov 27, 2020 | Nov 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 175,562) | 265,229) | 155,690) | 234,133) | 217,408) | 168,707) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,957) | 7,784) | 6,976) | 6,606) | 5,049) | 4,099) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 22.06 | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | 19.87 | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | |
| Cadence Design Systems Inc. | 42.25 | 55.61 | 42.11 | 39.61 | 45.75 | — | |
| CrowdStrike Holdings Inc. | 262.20 | — | — | — | — | — | |
| International Business Machines Corp. | 22.90 | 14.41 | 22.17 | 12.53 | 12.28 | — | |
| Intuit Inc. | 38.55 | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | |
| Microsoft Corp. | 23.66 | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | |
| Oracle Corp. | 21.81 | 21.80 | 17.12 | 13.78 | 11.54 | 11.83 | |
| Palantir Technologies Inc. | 551.39 | 175.93 | — | — | — | — | |
| Palo Alto Networks Inc. | 84.17 | 85.08 | 515.19 | — | 349.99 | 117.18 | |
| Salesforce Inc. | 31.64 | 38.31 | 38.88 | 33.83 | 49.45 | — | |
| ServiceNow Inc. | 87.89 | 96.48 | 104.30 | 147.45 | 220.91 | — | |
| Synopsys Inc. | 39.17 | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | |
| Workday Inc. | 86.37 | 216.44 | 147.90 | 670.04 | — | — | |
| EV/EBITDA, Sector | |||||||
| Software & Services | 27.09 | 25.22 | 22.55 | 25.68 | 23.25 | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 27.60 | 23.59 | 18.31 | 20.49 | 19.71 | — | |
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 175,562 ÷ 7,957 = 22.06
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. | Adobe Inc. EV/EBITDA ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024. |