Enterprise Value to EBITDA (EV/EBITDA)
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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: 2025-12-31), 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).
The financial performance, as indicated by earnings metrics, demonstrates a period of volatility followed by substantial growth. Initial observations reveal a significant fluctuation in profitability between 2021 and 2023, before a marked upward trend emerges in subsequent years.
- EBITDA Trend
- Earnings before interest, tax, depreciation, and amortization exhibited a decrease from US$74,397 million in 2021 to US$38,349 million in 2022. A strong recovery is then observed in 2023, with EBITDA reaching US$89,390 million. This positive momentum continues through 2024 and 2025, with EBITDA increasing to US$123,714 million and US$164,787 million respectively. This represents a compound annual growth rate of approximately 20.8% from 2022 to 2025.
- Relationship between EBITDA and Other Earnings Metrics
- The difference between EBITDA and Earnings Before Interest and Tax (EBIT) remained relatively consistent across the observed period, indicating stable depreciation and amortization expenses. The gap between EBIT and Earnings Before Tax (EBT) also remained relatively stable, suggesting consistent interest expense. The most significant fluctuations were observed between EBT and Net Income, with a substantial loss reported in 2022, contrasting sharply with the positive net income figures in 2021, 2023, 2024, and 2025.
- Profitability Recovery
- The period between 2022 and 2025 demonstrates a clear recovery in profitability across all measured earnings levels. While 2022 experienced a net loss, subsequent years show increasing net income, driven by growth in EBT, EBIT, and ultimately, EBITDA. The growth rate accelerates from 2023 to 2025, suggesting improving operational efficiency and/or increased revenue generation.
Overall, the financial metrics indicate a period of initial setback followed by a robust and accelerating recovery in earnings performance. The substantial growth in EBITDA from 2023 to 2025 is a key indicator of improved financial health and operational effectiveness.
Enterprise Value to EBITDA Ratio, Current
Amazon.com Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ 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: 2025-12-31).
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited considerable fluctuation over the five-year period. Initial values decreased, followed by an increase, and then a subsequent decline, suggesting evolving market perceptions of the company’s value relative to its operational cash flow.
- Enterprise Value (EV)
- Enterprise Value decreased significantly from 2021 to 2022, falling from US$1,582,224 million to US$1,075,370 million. A recovery was then observed in 2023, with EV rising to US$1,776,793 million. Further growth occurred in 2024, reaching US$2,395,510 million, but this was followed by a decrease in 2025 to US$2,215,422 million. This pattern indicates periods of both expansion and contraction in the company’s overall valuation.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced a substantial decline from 2021 to 2022, decreasing from US$74,397 million to US$38,349 million. A strong recovery was then noted in 2023, with EBITDA increasing to US$89,390 million. Continued growth was observed in 2024 and 2025, reaching US$123,714 million and US$164,787 million respectively. This demonstrates a clear upward trend in operational profitability over the latter part of the analyzed period.
- EV/EBITDA Ratio
- The EV/EBITDA ratio began at 21.27 in 2021. It increased to 28.04 in 2022, coinciding with the decrease in EBITDA and the larger decrease in EV. The ratio then decreased to 19.88 in 2023, reflecting the recovery in EBITDA and the increase in EV. A further decrease to 19.36 was observed in 2024, and a more pronounced decline to 13.44 occurred in 2025. This final decrease suggests that the company’s enterprise value is becoming more aligned with its earnings potential, or that market expectations regarding future growth have moderated.
The observed trends suggest a dynamic valuation environment. The initial increase in the EV/EBITDA ratio in 2022 may have been driven by market conditions or investor sentiment, while the subsequent declines indicate a potential re-evaluation of the company’s worth relative to its operational performance. The increasing EBITDA figures in the later years, coupled with the decreasing EV/EBITDA ratio, could signal improving operational efficiency and a more favorable investment outlook.