Stock Analysis on Net
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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) 30,425 (2,722) 33,364 21,331 11,588
Add: Income tax expense 7,120 (3,217) 4,791 2,863 2,374
Earnings before tax (EBT) 37,545 (5,939) 38,155 24,194 13,962
Add: Interest expense 3,182 2,367 1,809 1,647 1,600
Earnings before interest and tax (EBIT) 40,727 (3,572) 39,964 25,841 15,562
Add: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 48,663 41,921 34,433 25,180 21,953
Earnings before interest, tax, depreciation and amortization (EBITDA) 89,390 38,349 74,397 51,021 37,515

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

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) 1,790,972
Earnings before interest, tax, depreciation and amortization (EBITDA) 89,390
Valuation Ratio
EV/EBITDA 20.04
Benchmarks
EV/EBITDA, Competitors1
Home Depot Inc. 15.85
Lowe’s Cos. Inc. 12.74
TJX Cos. Inc. 18.21
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail 18.53
EV/EBITDA, Industry
Consumer Discretionary 18.40

Based on: 10-K (reporting date: 2023-12-31).

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, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 1,776,793 1,075,370 1,582,224 1,645,118 996,679
Earnings before interest, tax, depreciation and amortization (EBITDA)2 89,390 38,349 74,397 51,021 37,515
Valuation Ratio
EV/EBITDA3 19.88 28.04 21.27 32.24 26.57
Benchmarks
EV/EBITDA, Competitors4
Home Depot Inc. 12.29 14.08 16.53 12.34 13.36
Lowe’s Cos. Inc. 11.98 12.43 14.41 8.98 18.22
TJX Cos. Inc. 15.36 13.00 65.35 10.33 12.61
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail 17.44 20.13 20.16 24.23 21.23
EV/EBITDA, Industry
Consumer Discretionary 17.94 19.55 21.16 29.01 17.75

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,776,793 ÷ 89,390 = 19.88

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 2021 to 2022 but then decreased significantly from 2022 to 2023.