Enterprise Value to EBITDA (EV/EBITDA)
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Enterprise Value (EV)
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Amazon.com Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Net Income (Loss)
- The net income exhibited substantial variability over the analyzed periods. Starting at $21,331 million in 2020, there was a significant increase to $33,364 million in 2021. However, in 2022 the company experienced a notable loss of $2,722 million, reflecting a considerable downturn. This loss was followed by a strong recovery and growth in subsequent years, with net income rising sharply to $30,425 million in 2023 and further to $59,248 million in 2024, indicating robust profitability towards the end of the period.
- Earnings Before Tax (EBT)
- EBT followed a pattern similar to net income, initially increasing from $24,194 million in 2020 to $38,155 million in 2021. This was followed by a significant decline into negative territory in 2022, with a loss of $5,939 million. Subsequently, EBT demonstrated a strong recovery, increasing to $37,545 million in 2023 and then more than doubling to $68,513 million in 2024. This pattern suggests fluctuations in pre-tax operational performance, but with a positive trend in the latter years.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed growth in the first two years, rising from $25,841 million in 2020 to $39,964 million in 2021. It then declined sharply in 2022 to a loss of $3,572 million. However, the following two years showed strong recovery and growth, with EBIT reaching $40,727 million in 2023 and $70,919 million in 2024. The trends in EBIT mirror those of net income and EBT but exclude interest and tax effects, underscoring volatility before financial and tax expenses.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA displayed a steady upward trend with notable growth. Starting at $51,021 million in 2020, EBITDA increased strongly to $74,397 million in 2021. In 2022, despite declines in other profit metrics, EBITDA remained positive at $38,349 million, indicating underlying operational earnings resilience before non-cash charges. The metric then surged sharply to $89,390 million in 2023 and further to $123,714 million in 2024, reflecting significant improvement in core cash-generating capacity.
- Overall Analysis
- The financial metrics reveal a period of volatility particularly in 2022, where losses were registered across net income, EBT, and EBIT, highlighting a challenging operational and financial environment. Despite this, EBITDA remained positive, suggesting that depreciation and amortization expenses contributed largely to the operating losses. The subsequent years show a strong recovery and expansion in profitability and earnings capacity across all levels. This recovery indicates effective management actions or favorable market conditions that improved operational efficiency and financial performance. The marked increase in EBITDA compared to EBIT and net income also points to growing operational cash flow generation, which may provide a strong foundation for future investments and financial stability.
Enterprise Value to EBITDA Ratio, Current
Amazon.com Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Home Depot Inc. | |
| Lowe’s Cos. Inc. | |
| TJX Cos. Inc. | |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | |
| EV/EBITDA, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2024-12-31).
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, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Home Depot Inc. | ||||||
| Lowe’s Cos. Inc. | ||||||
| TJX Cos. Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | ||||||
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value experienced fluctuations over the five-year period. It initially decreased from approximately $1.645 trillion in 2020 to roughly $1.585 trillion in 2021, followed by a significant drop to about $1.075 trillion in 2022. However, the value increased substantially afterwards, reaching approximately $1.777 trillion in 2023 and further rising to around $2.396 trillion by the end of 2024. This indicates a period of contraction in 2021-2022, succeeded by robust growth through 2023 and 2024.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a mixed pattern. There was a notable increase from $51.0 billion in 2020 to $74.4 billion in 2021, reflecting improved operational profitability. This was followed by a sharp decline to approximately $38.3 billion in 2022, which could imply operational challenges or increased costs. Subsequently, EBITDA rebounded strongly, rising to about $89.4 billion in 2023 and further to $123.7 billion in 2024, suggesting an effective recovery and strengthening earnings capacity.
- EV/EBITDA Ratio
- The EV/EBITDA ratio declined from 32.24 in 2020 to 21.27 in 2021, indicating that the company's valuation became more reasonable relative to its earnings. This ratio rose again to 28.04 in 2022, which aligns with the drop in EBITDA and decrease in enterprise value. In the later period, the ratio steadily decreased to 19.88 in 2023 and slightly further to 19.36 in 2024. This trend suggests improving valuation metrics as EBITDA growth outpaced the increase in enterprise value, indicating enhanced operational efficiency and perceived investment attractiveness.