Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
e.l.f. Beauty, Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
The financial trajectory from March 31, 2020, to March 31, 2024, is characterized by an initial contraction in 2021 followed by a period of aggressive, exponential growth. All profitability metrics reached their peak in the most recent fiscal year, indicating a strong upward trend in operational performance and bottom-line results.
- EBITDA Performance and Trends
- Earnings before interest, tax, depreciation and amortization exhibited a V-shaped recovery. After declining from US$ 54.08 million in 2020 to US$ 32.96 million in 2021, EBITDA returned to baseline levels by 2022 (US$ 54.96 million) before accelerating sharply to US$ 90.23 million in 2023 and US$ 188.74 million in 2024. This represents a total increase of approximately 249% from 2020 to 2024.
- Operating Income and Profitability Analysis
- Earnings before interest and tax (EBIT) followed a similar growth pattern, showing a significant surge in the final two years. EBIT rose from US$ 27.88 million in 2022 to US$ 152.83 million in 2024. The widening gap between EBITDA and EBIT suggests a consistent level of depreciation and amortization expenses, while the rapid growth in EBIT indicates strong operational scaling.
- Net Income Expansion and Bottom-Line Growth
- Net income demonstrated the most volatility and the most dramatic recovery. Following a low of US$ 6.23 million in 2021, net income grew to US$ 127.66 million by 2024. The acceleration of net income relative to EBT and EBIT in the latter years indicates an improving ability to convert operational earnings into final profit, with net income increasing more than 20-fold from its 2021 trough.
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Enterprise Value to EBITDA Ratio, Current
e.l.f. Beauty, Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 9,222,862) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 188,743) |
| Valuation Ratio | |
| EV/EBITDA | 48.86 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Procter & Gamble Co. | 14.74 |
| EV/EBITDA, Industry | |
| Consumer Staples | 20.49 |
Based on: 10-K (reporting date: 2024-03-31).
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
e.l.f. Beauty, Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 10,489,807) | 5,555,934) | 1,340,991) | 1,541,824) | 921,139) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 188,743) | 90,228) | 54,958) | 32,964) | 54,082) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 55.58 | 61.58 | 24.40 | 46.77 | 17.03 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Procter & Gamble Co. | 18.58 | 18.03 | 17.48 | 17.56 | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Staples | 17.62 | 16.39 | 16.42 | 15.65 | — | |
Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 10,489,807 ÷ 188,743 = 55.58
4 Click competitor name to see calculations.
The financial trajectory between March 31, 2020, and March 31, 2024, is characterized by an aggressive expansion in enterprise value and a significant acceleration in operational earnings. While both metrics have grown substantially, the valuation multiple has experienced considerable volatility, reflecting shifting market expectations and rapid scaling.
- Enterprise Value (EV) Expansion
- Enterprise value grew from 921,139 thousand US dollars in 2020 to 10,489,807 thousand US dollars in 2024. The most pronounced acceleration occurred after March 31, 2022, with a surge from approximately 1.34 billion US dollars to over 10.48 billion US dollars within two fiscal years, representing a massive increase in the overall market valuation of the entity.
- EBITDA Growth Trends
- Earnings before interest, tax, depreciation, and amortization showed a non-linear growth pattern. After a decline in 2021 to 32,964 thousand US dollars, EBITDA recovered to 54,958 thousand US dollars in 2022 and expanded rapidly thereafter, reaching 188,743 thousand US dollars by March 31, 2024. This indicates a strong improvement in operational profitability and cash flow generation in the latter half of the analyzed period.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio has fluctuated significantly, moving from a baseline of 17.03 in 2020 to a peak of 61.58 in 2023, before settling at 55.58 in 2024. The sharp increase in the ratio between 2022 and 2023 suggests that enterprise value grew at a much faster rate than EBITDA, indicating that the market priced in substantial future growth expectations. Although EBITDA more than doubled between 2023 and 2024, the ratio remained high, signifying a continued premium valuation relative to current earnings.
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