Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
T-Mobile US Inc., EBITDA calculation
US$ in millions
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. | T-Mobile US Inc. EBITDA decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Enterprise Value to EBITDA Ratio, Current
T-Mobile US Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 328,046) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 27,152) |
| Valuation Ratio | |
| EV/EBITDA | 12.08 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AT&T Inc. | 6.79 |
| Verizon Communications Inc. | 7.92 |
| EV/EBITDA, Sector | |
| Telecommunication Services | 8.47 |
| 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
T-Mobile US 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 millions) | ||||||
| Enterprise value (EV)1 | 264,390) | 249,831) | 225,649) | 211,414) | 96,672) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 27,152) | 20,161) | 23,076) | 20,382) | 12,330) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 9.74 | 12.39 | 9.78 | 10.37 | 7.84 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AT&T Inc. | 5.84 | 13.24 | 5.09 | 8.75 | 6.89 | |
| Verizon Communications Inc. | 7.90 | 6.48 | 7.60 | 7.61 | 7.95 | |
| EV/EBITDA, Sector | ||||||
| Telecommunication Services | 7.51 | 9.38 | 6.75 | 8.58 | 7.37 | |
| 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
= 264,390 ÷ 27,152 = 9.74
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. | T-Mobile US Inc. EV/EBITDA ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |