Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Costco Wholesale Corp. (NASDAQ:COST)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

Costco Wholesale Corp., EBITDA calculation

US$ in millions

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12 months ended: Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
Net income attributable to Costco 4,002  3,659  3,134  2,679  2,350  2,377 
Add: Net income attributable to noncontrolling interest 57  45  45  35  26  32 
Add: Income tax expense 1,308  1,061  1,263  1,325  1,243  1,195 
Earnings before tax (EBT) 5,367  4,765  4,442  4,039  3,619  3,604 
Add: Interest expense 160  150  159  134  133  124 
Earnings before interest and tax (EBIT) 5,527  4,915  4,601  4,173  3,752  3,728 
Add: Depreciation and amortization 1,645  1,492  1,437  1,370  1,255  1,127 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,172  6,407  6,038  5,543  5,007  4,855 

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

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. Costco Wholesale Corp.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Enterprise Value to EBITDA Ratio, Current

Costco Wholesale Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 155,022 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,172 
Valuation Ratio
EV/EBITDA 21.61
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 44.16
Dollar General Corp. 18.98
Home Depot Inc. 18.46
Lowe’s Cos. Inc. 18.84
Target Corp. 14.32
TJX Cos. Inc. 14.60
Walmart Inc. 13.81
EV/EBITDA, Sector
General Retailers 28.26
EV/EBITDA, Industry
Consumer Services 20.63

Based on: 10-K (filing date: 2020-10-07).

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

Costco Wholesale Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 30, 2020 Sep 1, 2019 Sep 2, 2018 Sep 3, 2017 Aug 28, 2016 Aug 30, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 154,900  128,562  95,235  70,029  66,455  65,495 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,172  6,407  6,038  5,543  5,007  4,855 
Valuation Ratio
EV/EBITDA3 21.60 20.07 15.77 12.63 13.27 13.49
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc. 26.68 28.54 43.43 31.19 32.86
Dollar General Corp. 13.79 12.89 11.19 9.06 11.71 11.91
Home Depot Inc. 12.34 13.36 13.46 12.90 13.23 12.90
Lowe’s Cos. Inc. 8.98 18.22 11.22 11.41 12.17 12.78
Target Corp. 8.50 7.49 6.96 5.59 7.47 9.21
TJX Cos. Inc. 10.33 12.61 11.11 11.16 11.83 11.14
Walmart Inc. 11.12 13.73 10.91 7.91 7.75 8.40
EV/EBITDA, Sector
General Retailers 18.40 16.32 15.57 12.97
EV/EBITDA, Industry
Consumer Services 15.05 14.26 13.52 12.21

Based on: 10-K (filing date: 2020-10-07), 10-K (filing date: 2019-10-11), 10-K (filing date: 2018-10-26), 10-K (filing date: 2017-10-18), 10-K (filing date: 2016-10-12), 10-K (filing date: 2015-10-14).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 154,900 ÷ 7,172 = 21.60

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. Costco Wholesale Corp.’s EV/EBITDA ratio increased from 2018 to 2019 and from 2019 to 2020.