Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Time Warner Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2013-12-31).
| 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. | Time Warner Inc. EBITDA increased from 2015 to 2016 and from 2016 to 2017. |
Enterprise Value to EBITDA Ratio, Current
Time Warner Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 94,404) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 17,015) |
| Valuation Ratio | |
| EV/EBITDA | 5.55 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Alphabet Inc. | 21.92 |
| Comcast Corp. | 6.68 |
| Meta Platforms Inc. | 24.22 |
| Netflix Inc. | 16.67 |
| Walt Disney Co. | 18.19 |
Based on: 10-K (reporting date: 2017-12-31).
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
Time Warner Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 94,719) | 97,959) | 74,309) | 88,328) | 76,049) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 17,015) | 15,576) | 15,539) | 14,805) | 14,734) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 5.57 | 6.29 | 4.78 | 5.97 | 5.16 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Alphabet Inc. | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2013-12-31).
3 2017 Calculation
EV/EBITDA = EV ÷ EBITDA
= 94,719 ÷ 17,015 = 5.57
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. | Time Warner Inc. EV/EBITDA ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017. |