Stock Analysis on Net

Amazon.com Inc. (NASDAQ:AMZN)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

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

Amazon.com Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income 33,364 21,331 11,588 10,073 3,033
Add: Income tax expense 4,791 2,863 2,374 1,197 769
Earnings before tax (EBT) 38,155 24,194 13,962 11,270 3,802
Add: Interest expense 1,809 1,647 1,600 1,417 848
Earnings before interest and tax (EBIT) 39,964 25,841 15,562 12,687 4,650
Add: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 34,296 25,251 21,789 15,341 11,478
Earnings before interest, tax, depreciation and amortization (EBITDA) 74,260 51,092 37,351 28,028 16,128

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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. Amazon.com Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021.

Enterprise Value to EBITDA Ratio, Current

Amazon.com Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 906,392
Earnings before interest, tax, depreciation and amortization (EBITDA) 74,260
Valuation Ratio
EV/EBITDA 12.21
Benchmarks
EV/EBITDA, Competitors1
Booking Holdings Inc. 35.83
Home Depot Inc. 14.03
Lowe’s Cos. Inc. 10.58
Target Corp. 6.61
EV/EBITDA, Sector
Retailing 13.37
EV/EBITDA, Industry
Consumer Discretionary 14.66

Based on: 10-K (reporting date: 2021-12-31).

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

Amazon.com Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,582,224 1,645,118 996,679 799,780 700,407
Earnings before interest, tax, depreciation and amortization (EBITDA)2 74,260 51,092 37,351 28,028 16,128
Valuation Ratio
EV/EBITDA3 21.31 32.20 26.68 28.54 43.43
Benchmarks
EV/EBITDA, Competitors4
Booking Holdings Inc. 45.39 73.17 10.49 15.94 18.77
Home Depot Inc. 16.53 12.34 13.36 13.46 12.90
Lowe’s Cos. Inc. 14.41 8.98 18.22 11.22 11.41
Target Corp. 10.35 8.50 7.49 6.96 5.59
EV/EBITDA, Sector
Retailing 19.46 24.53 19.67 19.25 21.82
EV/EBITDA, Industry
Consumer Discretionary 20.63 28.43 16.98 14.94 15.02

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,582,224 ÷ 74,260 = 21.31

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. Amazon.com Inc. EV/EBITDA ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.