Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

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

Microsoft Corp., EBITDA calculation

US$ in millions

12 months ended:	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Net income	88,136)	72,361)	72,738)	61,271)	44,281)	39,240)
Add: Income tax expense	19,651)	16,950)	10,978)	9,831)	8,755)	4,448)
Earnings before tax (EBT)	107,787)	89,311)	83,716)	71,102)	53,036)	43,688)
Add: Interest expense	2,935)	1,968)	2,063)	2,346)	2,591)	2,686)
Earnings before interest and tax (EBIT)	110,722)	91,279)	85,779)	73,448)	55,627)	46,374)
Add: Depreciation, amortization, and other	22,287)	13,861)	14,460)	11,686)	12,796)	11,682)
Earnings before interest, tax, depreciation and amortization (EBITDA)	133,009)	105,140)	100,239)	85,134)	68,423)	58,056)

Based on: 10-K (reporting date: 2024-06-30), 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).

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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 2022 to 2023 and from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

Microsoft Corp., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	3,092,351)
Earnings before interest, tax, depreciation and amortization (EBITDA)	133,009)
Valuation Ratio
EV/EBITDA	23.25
Benchmarks
EV/EBITDA, Competitors¹
Accenture PLC	19.65
Adobe Inc.	27.71
Autodesk Inc.	53.02
Cadence Design Systems Inc.	56.64
CrowdStrike Holdings Inc.	282.93
International Business Machines Corp.	16.42
Intuit Inc.	40.24
Oracle Corp.	28.05
Palo Alto Networks Inc.	98.69
Salesforce Inc.	33.57
ServiceNow Inc.	130.08
Synopsys Inc.	52.66
EV/EBITDA, Sector
Software & Services	31.70
EV/EBITDA, Industry
Information Technology	36.30

Based on: 10-K (reporting date: 2024-06-30).

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, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	3,146,813)	2,410,213)	2,021,362)	2,093,369)	1,487,741)	999,078)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	133,009)	105,140)	100,239)	85,134)	68,423)	58,056)
Valuation Ratio
EV/EBITDA³	23.66	22.92	20.17	24.59	21.74	17.21
Benchmarks
EV/EBITDA, Competitors⁴
Accenture PLC	19.87	17.26	14.25	23.31	17.46	15.60
Adobe Inc.	—	34.07	22.32	35.44	43.06	41.16
Autodesk Inc.	37.67	36.84	53.83	79.27	69.31	335.51
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
Oracle Corp.	21.81	21.80	17.12	13.78	11.54	11.83
Palo Alto Networks Inc.	84.17	85.08	515.16	—	349.95	117.16
Salesforce Inc.	31.74	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
EV/EBITDA, Sector
Software & Services	—	24.84	22.25	25.32	22.51	18.25
EV/EBITDA, Industry
Information Technology	—	23.65	18.58	20.64	19.71	14.59

¹ See details »

² See details »

³ 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 3,146,813 ÷ 133,009 = 23.66

⁴ Click competitor name to see calculations.

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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 increased from 2022 to 2023 and from 2023 to 2024.

Microsoft Corp. (NASDAQ:MSFT)

Enterprise Value to EBITDA (EV/EBITDA)

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

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical