Stock Analysis on Net
Stock Analysis on Net
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Amazon.com Inc. (NASDAQ:AMZN)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Amazon.com Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 11,588  10,073  3,033  2,371  596 
Add: Income tax expense 2,374  1,197  769  1,425  950 
Earnings before tax (EBT) 13,962  11,270  3,802  3,796  1,546 
Add: Interest expense 1,600  1,417  848  484  459 
Earnings before interest and tax (EBIT) 15,562  12,687  4,650  4,280  2,005 
Add: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 21,789  15,341  11,478  8,116  6,281 
Earnings before interest, tax, depreciation and amortization (EBITDA) 37,351  28,028  16,128  12,396  8,286 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

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.’s EBITDA increased from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

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

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 1,499,278 
Earnings before interest, tax, depreciation and amortization (EBITDA) 37,351 
Valuation Ratio
EV/EBITDA 40.14
Benchmarks
EV/EBITDA, Competitors1
Costco Wholesale Corp. 23.39
Dollar General Corp. 19.07
Home Depot Inc. 17.37
Lowe’s Cos. Inc. 17.84
Target Corp. 11.62
TJX Cos. Inc. 11.70
Walmart Inc. 12.97
EV/EBITDA, Sector
General Retailers 25.90
EV/EBITDA, Industry
Consumer Services 18.63

Based on: 10-K (filing date: 2020-01-31).

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 LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 996,641  799,795  700,383  386,686  272,288 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 37,351  28,028  16,128  12,396  8,286 
Valuation Ratio
EV/EBITDA3 26.68 28.54 43.43 31.19 32.86
Benchmarks
EV/EBITDA, Competitors4
Costco Wholesale Corp. 20.07 15.77 12.63 13.27 13.49
Dollar General Corp. 12.89 11.19 9.06 11.71 11.91
Home Depot Inc. 13.36 13.46 12.90 13.23 12.90
Lowe’s Cos. Inc. 18.22 11.22 11.41 12.17 12.78
Target Corp. 7.49 6.96 5.59 7.47 9.21
TJX Cos. Inc. 12.61 11.11 11.16 11.83 11.14
Walmart Inc. 13.73 10.91 7.91 7.75 8.40
EV/EBITDA, Sector
General Retailers 18.40 16.32 15.57 12.97 12.53
EV/EBITDA, Industry
Consumer Services 15.05 14.26 13.52 12.21 12.18

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-01), 10-K (filing date: 2018-02-02), 10-K (filing date: 2017-02-10), 10-K (filing date: 2016-01-29).

1 See details »

2 See details »

3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 996,641 ÷ 37,351 = 26.68

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.’s EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019.