Home Depot Inc. (HD)

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

Home Depot Inc., EBITDA calculation

USD $ in millions

12 months ended	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
Net earnings	4,535	3,883	3,338	2,661	2,260	4,395
Interest expense	632	606	530	676	624	696
Income tax expense (benefit)	2,686	2,185	1,935	1,362	1,278	2,410
Earnings before interest and tax (EBIT)	7,853	6,674	5,803	4,699	4,162	7,501
Depreciation and amortization	1,684	1,682	1,718	1,806	1,902	1,906
Earnings before interest, tax, depreciation and amortization (EBITDA)	9,537	8,356	7,521	6,505	6,064	9,407

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 2011 to 2012 and from 2012 to 2013.

Home Depot Inc., current EV/EBITDA

	Home Depot Inc.	Consumer Services
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	122,330
Earnings before interest, tax, depreciation and amortization (EBITDA)	9,537
Ratio
EV/EBITDA	12.83	9.55

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.

Home Depot Inc., EV/EBITDA calculation

	Feb 3, 2013	Jan 29, 2012	Jan 30, 2011	Jan 31, 2010	Feb 1, 2009	Feb 3, 2008
Selected Financial Data (USD $ in millions)
Enterprise value (EV)¹	111,961	84,477	69,805	63,498	52,932	62,368
Earnings before interest, tax, depreciation and amortization (EBITDA)²	9,537	8,356	7,521	6,505	6,064	9,407
EV/EBITDA, Comparison to Industry
Home Depot Inc.³	11.74	10.11	9.28	9.76	8.73	6.63
Industry, Consumer Services	–	7.98	7.21	7.84	7.44	8.87

2013 Calculations

³ EV/EBITDA = EV ÷ EBITDA
= 111,961 ÷ 9,537 = 11.74

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 increased from 2011 to 2012 and from 2012 to 2013.