Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Warner Bros. Discovery Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| 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. | Warner Bros. Discovery Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level. |
Enterprise Value to EBITDA Ratio, Current
Warner Bros. Discovery Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 37,871) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,149) |
| Valuation Ratio | |
| EV/EBITDA | 5.30 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 23.13 |
| Comcast Corp. | 6.11 |
| Meta Platforms Inc. | 24.24 |
| Netflix Inc. | 18.45 |
| Walt Disney Co. | 16.93 |
| EV/EBITDA, Sector | |
| Media & Entertainment | 20.47 |
| EV/EBITDA, Industry | |
| Communication Services | 15.27 |
Based on: 10-K (reporting date: 2021-12-31).
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
Warner Bros. Discovery Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 26,581) | 42,035) | 28,601) | 33,012) | 16,764) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,149) | 6,691) | 7,171) | 6,437) | 2,578) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 3.72 | 6.28 | 3.99 | 5.13 | 6.50 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | 18.08 | 20.84 | 17.39 | — | — | |
| Comcast Corp. | 8.45 | 10.36 | 8.66 | — | — | |
| Meta Platforms Inc. | 10.85 | 17.31 | 17.76 | — | — | |
| Netflix Inc. | 9.51 | 16.57 | 13.35 | — | — | |
| Walt Disney Co. | 34.53 | 60.13 | 16.10 | — | — | |
| EV/EBITDA, Sector | ||||||
| Media & Entertainment | 14.62 | 18.67 | 14.92 | — | — | |
| EV/EBITDA, Industry | ||||||
| Communication Services | 11.57 | 14.51 | 11.51 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 26,581 ÷ 7,149 = 3.72
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. | Warner Bros. Discovery Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |