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: 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
| 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
| 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).
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. |