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Home Depot Inc. (HD) | Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

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Home Depot Inc., EBITDA calculation

USD $ in millions

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  12 months ended Jan 29, 2012 Jan 30, 2011 Jan 31, 2010 Feb 1, 2009 Feb 3, 2008 Jan 28, 2007
chart Net earnings
chart Add: Interest expense
chart Add: Income tax expense (benefit)
chart Earnings before interest and tax (EBIT)
chart Add: Depreciation and amortization
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
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. Home Depot Inc.'s EBITDA increased from 2010 to 2011 and from 2011 to 2012.

EV to EBITDA Ratio, Current

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Home Depot Inc., current EV/EBITDA

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  Home Depot Inc. Consumer Services
Selected Financial Data (USD $ in millions)
Enterprise value (EV)  
Earnings before interest, tax, depreciation and amortization (EBITDA)  
Ratio
EV/EBITDA

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

EV to EBITDA Ratio, Historical

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Home Depot Inc., EV/EBITDA calculation

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    Jan 29, 2012 Jan 30, 2011 Jan 31, 2010 Feb 1, 2009 Feb 3, 2008 Jan 28, 2007
  Selected Financial Data (USD $ in millions)
chart Enterprise value (EV)
chart Earnings before interest, tax, depreciation and amortization (EBITDA)
  EV/EBITDA, Comparison to Industry
chart Home Depot Inc.1
  Industry, Consumer Services

2012 Calculations

1 EV/EBITDA = EV ÷ EBITDA
= ÷ =

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Home Depot Inc.'s EV/EBITDA ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.

May 23, 2012

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