Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Visa Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
| 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. | Visa Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Visa Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 471,736) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 19,535) |
| Valuation Ratio | |
| EV/EBITDA | 24.15 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Accenture PLC | 15.62 |
| Adobe Inc. | 18.60 |
| Cadence Design Systems Inc. | 42.44 |
| CrowdStrike Holdings Inc. | 305.74 |
| International Business Machines Corp. | 21.21 |
| Intuit Inc. | 36.25 |
| Microsoft Corp. | 21.74 |
| Oracle Corp. | 20.75 |
| Palantir Technologies Inc. | 388.94 |
| Palo Alto Networks Inc. | 85.82 |
| Salesforce Inc. | 21.47 |
| ServiceNow Inc. | 67.77 |
| Synopsys Inc. | 33.13 |
| Workday Inc. | 51.22 |
| EV/EBITDA, Sector | |
| Software & Services | 33.38 |
| EV/EBITDA, Industry | |
| Information Technology | 29.68 |
Based on: 10-K (reporting date: 2022-09-30).
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
Visa Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | Sep 30, 2018 | Sep 30, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 435,704) | 431,122) | 449,223) | 394,738) | 316,920) | 257,478) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 19,535) | 17,380) | 15,073) | 16,073) | 14,031) | 12,813) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 22.30 | 24.81 | 29.80 | 24.56 | 22.59 | 20.10 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Accenture PLC | 14.25 | 23.31 | 17.46 | 15.60 | — | — | |
| Adobe Inc. | 22.32 | 35.44 | 43.06 | 41.16 | — | — | |
| Cadence Design Systems Inc. | 42.11 | 39.61 | 45.75 | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | — | |
| International Business Machines Corp. | 22.17 | 12.53 | 12.28 | — | — | — | |
| 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 | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | — | |
| Palo Alto Networks Inc. | 515.19 | — | 349.99 | 117.18 | — | — | |
| Salesforce Inc. | 38.88 | 33.83 | 49.45 | — | — | — | |
| ServiceNow Inc. | 104.30 | 147.45 | 220.91 | — | — | — | |
| Synopsys Inc. | 36.73 | 53.43 | 42.24 | 26.98 | — | — | |
| Workday Inc. | 147.90 | 670.04 | — | — | — | — | |
| EV/EBITDA, Sector | |||||||
| Software & Services | 22.55 | 25.68 | 23.25 | — | — | — | |
| EV/EBITDA, Industry | |||||||
| Information Technology | 18.31 | 20.49 | 19.71 | — | — | — | |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 435,704 ÷ 19,535 = 22.30
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. | Visa Inc. EV/EBITDA ratio decreased from 2020 to 2021 and from 2021 to 2022. |