Stock Analysis on Net

Adobe Inc. (NASDAQ:ADBE)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

Adobe Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Nov 29, 2024 Dec 1, 2023 Dec 2, 2022 Dec 3, 2021 Nov 27, 2020 Nov 29, 2019
Net income 5,560 5,428 4,756 4,822 5,260 2,951
Add: Income tax expense 1,371 1,371 1,252 883 (1,084) 253
Earnings before tax (EBT) 6,931 6,799 6,008 5,705 4,176 3,205
Add: Interest expense 169 113 112 113 116 157
Earnings before interest and tax (EBIT) 7,100 6,912 6,120 5,818 4,292 3,362
Add: Depreciation, amortization and accretion 857 872 856 788 757 737
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,957 7,784 6,976 6,606 5,049 4,099

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 195,669
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,957
Valuation Ratio
EV/EBITDA 24.59
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 21.22
Cadence Design Systems Inc. 50.31
CrowdStrike Holdings Inc. 356.42
International Business Machines Corp. 19.58
Intuit Inc. 35.83
Microsoft Corp. 23.28
Oracle Corp. 26.37
Palantir Technologies Inc. 468.74
Palo Alto Networks Inc. 101.58
Salesforce Inc. 32.84
ServiceNow Inc. 83.93
Synopsys Inc. 39.22
EV/EBITDA, Sector
Software & Services 32.80
EV/EBITDA, Industry
Information Technology 37.68

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

Microsoft Excel
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. 55.61 42.11 39.61 45.75 31.64
CrowdStrike Holdings Inc. 262.20
International Business Machines Corp. 14.41 22.17 12.53 12.28 10.23
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. 31.74 38.42 38.91 33.92 49.78 56.71
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
EV/EBITDA, Sector
Software & Services 25.00 22.24 25.29 22.90
EV/EBITDA, Industry
Information Technology 23.49 18.19 20.35 19.58

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).

1 See details »

2 See details »

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.