Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Synopsys Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
| 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. | Synopsys Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Synopsys Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 80,466,291) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,550,080) |
| Valuation Ratio | |
| EV/EBITDA | 51.91 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 19.48 |
| Adobe Inc. | 27.71 |
| Autodesk Inc. | 52.57 |
| Cadence Design Systems Inc. | 55.82 |
| CrowdStrike Holdings Inc. | 285.55 |
| International Business Machines Corp. | 16.15 |
| Intuit Inc. | 39.84 |
| Microsoft Corp. | 23.38 |
| Oracle Corp. | 27.81 |
| Palo Alto Networks Inc. | 97.46 |
| Salesforce Inc. | 33.33 |
| ServiceNow Inc. | 129.96 |
| EV/EBITDA, Sector | |
| Software & Services | 31.69 |
| EV/EBITDA, Industry | |
| Information Technology | 36.39 |
Based on: 10-K (reporting date: 2023-10-31).
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
Synopsys Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | Oct 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 84,619,155) | 49,419,269) | 54,103,071) | 36,044,325) | 20,471,792) | 12,555,022) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,550,080) | 1,345,617) | 1,012,555) | 853,285) | 758,841) | 588,357) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 54.59 | 36.73 | 53.43 | 42.24 | 26.98 | 21.34 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | 17.26 | 14.25 | 23.31 | 17.46 | 15.60 | — | |
| Adobe Inc. | 34.07 | 22.32 | 35.44 | 43.06 | 41.16 | 37.27 | |
| Autodesk Inc. | 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. | — | — | — | — | — | — | |
| International Business Machines Corp. | 14.41 | 22.17 | 12.53 | 12.28 | 10.23 | — | |
| Intuit Inc. | 38.71 | 36.22 | 51.96 | 35.70 | 34.27 | — | |
| Microsoft Corp. | 22.92 | 20.17 | 24.59 | 21.74 | 17.21 | — | |
| Oracle Corp. | 21.80 | 17.12 | 13.78 | 11.54 | 11.83 | — | |
| Palo Alto Networks Inc. | 85.08 | 515.16 | — | 349.95 | 117.16 | — | |
| Salesforce Inc. | 38.42 | 38.91 | 33.92 | 49.78 | 56.71 | — | |
| ServiceNow Inc. | 96.48 | 104.30 | 147.45 | 220.91 | 187.17 | — | |
| 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 | — | |
Based on: 10-K (reporting date: 2023-10-31), 10-K (reporting date: 2022-10-31), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-10-31), 10-K (reporting date: 2018-10-31).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 84,619,155 ÷ 1,550,080 = 54.59
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. | Synopsys Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |