Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
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. | Costco Wholesale Corp. EBITDA increased from 2021 to 2022 and from 2022 to 2023. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 316,050) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 10,724) |
Valuation Ratio | |
EV/EBITDA | 29.47 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Target Corp. | 10.27 |
Walmart Inc. | 14.52 |
EV/EBITDA, Sector | |
Consumer Staples Distribution & Retail | 19.70 |
EV/EBITDA, Industry | |
Consumer Staples | 17.51 |
Based on: 10-K (reporting date: 2023-09-03).
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
Sep 3, 2023 | Aug 28, 2022 | Aug 29, 2021 | Aug 30, 2020 | Sep 1, 2019 | Sep 2, 2018 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 243,035) | 209,733) | 195,411) | 155,588) | 128,983) | 95,632) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 10,724) | 9,898) | 8,632) | 7,172) | 6,407) | 6,038) | |
Valuation Ratio | |||||||
EV/EBITDA3 | 22.66 | 21.19 | 22.64 | 21.69 | 20.13 | 15.84 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Target Corp. | 13.52 | 9.00 | 10.35 | 8.50 | 7.49 | — | |
Walmart Inc. | 13.92 | 13.94 | 12.01 | 11.12 | 13.73 | — | |
EV/EBITDA, Sector | |||||||
Consumer Staples Distribution & Retail | 15.84 | 14.18 | 13.50 | 12.30 | 13.73 | — | |
EV/EBITDA, Industry | |||||||
Consumer Staples | 15.81 | 16.29 | 16.20 | 14.98 | 19.15 | — |
Based on: 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01), 10-K (reporting date: 2018-09-02).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 243,035 ÷ 10,724 = 22.66
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. | Costco Wholesale Corp. EV/EBITDA ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |