Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EMC Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| 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. | EMC Corp. EBITDA increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
Enterprise Value to EBITDA Ratio, Current
EMC Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 54,750) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,953) |
| Valuation Ratio | |
| EV/EBITDA | 11.05 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Advanced Micro Devices Inc. | 46.75 |
| Analog Devices Inc. | 26.24 |
| Applied Materials Inc. | 14.78 |
| Broadcom Inc. | 45.78 |
| First Solar Inc. | 14.85 |
| Intel Corp. | 10.03 |
| KLA Corp. | 22.11 |
| Lam Research Corp. | 18.66 |
| Micron Technology Inc. | 11.04 |
| Monolithic Power Systems Inc. | 50.91 |
| NVIDIA Corp. | 92.25 |
| Qualcomm Inc. | 13.44 |
| Texas Instruments Inc. | 19.22 |
Based on: 10-K (reporting date: 2015-12-31).
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
EMC Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 49,565) | 56,338) | 49,998) | 45,643) | 54,456) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,953) | 5,773) | 5,686) | 5,410) | 4,841) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 10.01 | 9.76 | 8.79 | 8.44 | 11.25 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Advanced Micro Devices Inc. | — | — | — | — | — | |
| Analog Devices Inc. | — | — | — | — | — | |
| Applied Materials Inc. | — | — | — | — | — | |
| Broadcom Inc. | — | — | — | — | — | |
| First Solar Inc. | — | — | — | — | — | |
| Intel Corp. | — | — | — | — | — | |
| KLA Corp. | — | — | — | — | — | |
| Lam Research Corp. | — | — | — | — | — | |
| Micron Technology Inc. | — | — | — | — | — | |
| Monolithic Power Systems Inc. | — | — | — | — | — | |
| NVIDIA Corp. | — | — | — | — | — | |
| Qualcomm Inc. | — | — | — | — | — | |
| Texas Instruments Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
3 2015 Calculation
EV/EBITDA = EV ÷ EBITDA
= 49,565 ÷ 4,953 = 10.01
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. | EMC Corp. EV/EBITDA ratio increased from 2013 to 2014 and from 2014 to 2015. |