Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Amazon.com Inc., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
| 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 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Amazon.com Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 1,539,349) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 38,349) |
| Valuation Ratio | |
| EV/EBITDA | 40.14 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| AutoZone Inc. | 13.55 |
| Home Depot Inc. | 13.50 |
| Lowe’s Cos. Inc. | 12.46 |
| TJX Cos. Inc. | 17.74 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 25.13 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 23.68 |
Based on: 10-K (reporting date: 2022-12-31).
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
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 1,075,370) | 1,582,224) | 1,645,118) | 996,679) | 799,780) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 38,349) | 74,397) | 51,021) | 37,515) | 28,302) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 28.04 | 21.27 | 32.24 | 26.57 | 28.26 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| AutoZone Inc. | 13.93 | 12.66 | 10.85 | 12.55 | 10.87 | |
| Home Depot Inc. | 14.08 | 16.53 | 12.34 | 13.36 | 13.46 | |
| Lowe’s Cos. Inc. | 12.43 | 14.41 | 8.98 | 18.22 | 11.22 | |
| TJX Cos. Inc. | 13.00 | 65.35 | 10.33 | 12.61 | 11.11 | |
| EV/EBITDA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 19.87 | 19.93 | 23.79 | 20.90 | 19.92 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 19.34 | 20.92 | 28.68 | 17.62 | 15.43 | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 1,075,370 ÷ 38,349 = 28.04
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 decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level. |