Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Netflix Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 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).
| 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. | Netflix Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Netflix Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 395,986,168) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 21,459,615) |
| Valuation Ratio | |
| EV/EBITDA | 18.45 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 23.13 |
| Comcast Corp. | 6.11 |
| Meta Platforms Inc. | 24.24 |
| Walt Disney Co. | 16.93 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 19.92 |
| EV/EBITDA, Industry | |
| Communication Services | 16.15 |
Based on: 10-K (reporting date: 2023-12-31).
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
Netflix Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 254,260,097) | 170,788,302) | 181,045,624) | 246,646,811) | 160,321,713) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 21,459,615) | 20,332,955) | 19,044,502) | 14,889,470) | 12,008,080) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 11.85 | 8.40 | 9.51 | 16.57 | 13.35 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | 17.01 | 14.66 | 18.08 | 20.84 | 17.39 | |
| Comcast Corp. | 7.10 | 9.60 | 8.45 | 10.36 | 8.66 | |
| Meta Platforms Inc. | 19.72 | 12.19 | 10.85 | 17.31 | 17.76 | |
| Walt Disney Co. | 17.34 | 17.80 | 34.53 | 60.13 | 16.10 | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | 15.56 | 12.91 | 14.62 | 18.67 | 14.92 | |
| EV/EBITDA, Industry | ||||||
| Communication Services | 12.91 | 11.74 | 11.57 | 14.51 | 11.51 | |
Based on: 10-K (reporting date: 2023-12-31), 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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 254,260,097 ÷ 21,459,615 = 11.85
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. | Netflix Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |