Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
eBay Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| 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. | eBay Inc. EBITDA decreased from 2016 to 2017 but then slightly increased from 2017 to 2018. |
Enterprise Value to EBITDA Ratio, Current
eBay Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 33,294) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,740) |
| Valuation Ratio | |
| EV/EBITDA | 8.90 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | 23.78 |
| Home Depot Inc. | 17.43 |
| Lowe’s Cos. Inc. | 13.54 |
| TJX Cos. Inc. | 18.87 |
Based on: 10-K (reporting date: 2018-12-31).
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
eBay Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 35,495) | 47,034) | 36,629) | 28,866) | 63,477) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,740) | 3,244) | 4,558) | 3,237) | 5,144) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 9.49 | 14.50 | 8.04 | 8.92 | 12.34 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Amazon.com Inc. | — | — | — | — | — | |
| Home Depot Inc. | — | — | — | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | |
| TJX Cos. Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 35,495 ÷ 3,740 = 9.49
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. | eBay Inc. EV/EBITDA ratio increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level. |