Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Mastercard Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
| 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. | Mastercard Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Mastercard Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 358,700) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 12,953) |
| Valuation Ratio | |
| EV/EBITDA | 27.69 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 19.65 |
| Adobe Inc. | 27.71 |
| Autodesk Inc. | 53.02 |
| Cadence Design Systems Inc. | 56.64 |
| CrowdStrike Holdings Inc. | 282.93 |
| International Business Machines Corp. | 16.42 |
| Intuit Inc. | 40.24 |
| Microsoft Corp. | 23.25 |
| Oracle Corp. | 28.05 |
| Palo Alto Networks Inc. | 98.69 |
| Salesforce Inc. | 33.57 |
| ServiceNow Inc. | 130.08 |
| Synopsys Inc. | 52.66 |
| EV/EBITDA, Sector | |
| Software & Services | 36.06 |
| EV/EBITDA, Industry | |
| Information Technology | 34.79 |
Based on: 10-K (reporting date: 2022-12-31).
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
Mastercard Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 357,178) | 365,060) | 338,628) | 341,613) | 222,600) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 12,953) | 11,464) | 8,720) | 10,477) | 7,849) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 27.57 | 31.84 | 38.83 | 32.61 | 28.36 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Accenture PLC | 14.25 | 23.31 | 17.46 | 15.60 | — | |
| Adobe Inc. | 22.32 | 35.44 | 43.06 | 41.16 | 37.27 | |
| Autodesk Inc. | 53.83 | 79.27 | 69.31 | 335.51 | — | |
| Cadence Design Systems Inc. | 42.11 | 39.61 | 45.75 | 31.64 | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | 22.17 | 12.53 | 12.28 | 10.23 | — | |
| Intuit Inc. | 36.22 | 51.96 | 35.70 | 34.27 | — | |
| Microsoft Corp. | 20.17 | 24.59 | 21.74 | 17.21 | — | |
| Oracle Corp. | 17.12 | 13.78 | 11.54 | 11.83 | — | |
| Palo Alto Networks Inc. | 515.16 | — | 349.95 | 117.16 | — | |
| Salesforce Inc. | 38.91 | 33.92 | 49.78 | 56.71 | — | |
| ServiceNow Inc. | 104.30 | 147.45 | 220.91 | 187.17 | — | |
| Synopsys Inc. | 36.73 | 53.43 | 42.24 | 26.98 | 21.34 | |
| EV/EBITDA, Sector | ||||||
| Software & Services | 22.25 | 25.32 | 22.51 | 18.25 | — | |
| EV/EBITDA, Industry | ||||||
| Information Technology | 18.58 | 20.64 | 19.71 | 14.59 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 357,178 ÷ 12,953 = 27.57
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. | Mastercard Inc. EV/EBITDA ratio decreased from 2020 to 2021 and from 2021 to 2022. |