Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Arista Networks 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. | Arista Networks Inc. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Arista Networks Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 113,944,830) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,492,656) |
| Valuation Ratio | |
| EV/EBITDA | 45.71 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | 25.89 |
| Cisco Systems Inc. | 15.25 |
| Super Micro Computer Inc. | 15.66 |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | 25.59 |
| EV/EBITDA, Industry | |
| Information Technology | 36.39 |
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
Arista Networks 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 | 77,999,382) | 40,318,962) | 36,582,874) | 20,863,198) | 14,367,210) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,492,656) | 1,644,496) | 981,213) | 774,021) | 895,119) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 31.29 | 24.52 | 37.28 | 26.95 | 16.05 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Apple Inc. | 21.66 | 19.15 | 20.47 | 23.12 | 13.59 | |
| Cisco Systems Inc. | 12.16 | 10.52 | 15.05 | 9.69 | 11.36 | |
| Super Micro Computer Inc. | 16.77 | 10.50 | 11.19 | 10.65 | 7.75 | |
| EV/EBITDA, Sector | ||||||
| Technology Hardware & Equipment | 20.69 | 18.24 | 19.98 | 20.90 | 13.22 | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 23.65 | 18.58 | 20.64 | 19.71 | 14.59 | |
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
= 77,999,382 ÷ 2,492,656 = 31.29
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. | Arista Networks Inc. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |