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

Wal-Mart Stores Inc., EBITDA calculation

USD $ in millions

 
12 months ended Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Consolidated net income attributable to Walmart 16,022  16,999  15,699  16,389  14,335  13,400 
Add: Consolidated net income attributable to noncontrolling interest 673  757  688  604  513  499 
Less: Interest income 119  187  162  201  181  284 
Add: Interest expense, debt and capital leases 2,335  2,251  2,322  2,205  2,065  2,184 
Add: Income tax expense (benefit) 8,105  7,981  7,944  7,579  7,139  7,145 
Earnings before interest and tax (EBIT) 27,016  27,801  26,491  26,576  23,871  22,944 
Add: Depreciation and amortization 8,870  8,501  8,130  7,641  7,157  6,739 
Earnings before interest, tax, depreciation and amortization (EBITDA) 35,886  36,302  34,621  34,217  31,028  29,683 
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. Wal-Mart Stores Inc.'s EBITDA increased from 2012 to 2013 but then slightly declined from 2013 to 2014.

ADVERTISEMENT

Top


EV to EBITDA Ratio, Current

Wal-Mart Stores Inc., current EV/EBITDA calculation, comparison to benchmarks

 
Selected Financial Data (USD $ in millions)
Enterprise value (EV) 300,161 
Earnings before interest, tax, depreciation and amortization (EBITDA) 35,886 
Ratio
EV/EBITDA 8.36
Benchmarks
EV/EBITDA, Competitors
Amazon.com Inc. 36.71
Target Corp. 8.12
EV/EBITDA, Sector
Broadline Retailers 10.35
EV/EBITDA, Industry
Consumer Services 10.32

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.

ADVERTISEMENT

Top


EV to EBITDA Ratio, Historical

Wal-Mart Stores Inc., historical EV/EBITDA calculation, comparison to benchmarks

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Selected Financial Data (USD $ in millions)
Enterprise value (EV)1 300,184  297,926  259,306  227,973  245,759  243,534 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 35,886  36,302  34,621  34,217  31,028  29,683 
Ratio
EV/EBITDA3 8.36 8.21 7.49 6.66 7.92 8.20
Benchmarks
EV/EBITDA, Competitors
Amazon.com Inc. 42.00 45.19 36.85 33.63 32.53
Target Corp. 7.85 8.09 7.51 6.78 8.04 6.49
EV/EBITDA, Sector
Broadline Retailers 10.88 9.69 8.07 9.27 8.91
EV/EBITDA, Industry
Consumer Services 9.95 8.51 7.53 8.35 8.23

2014 Calculations

3 EV/EBITDA = EV ÷ EBITDA
= 300,184 ÷ 35,886 = 8.36

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Wal-Mart Stores Inc.'s EV/EBITDA ratio increased from 2012 to 2013 and from 2013 to 2014.

ADVERTISEMENT

Top