Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Costco Wholesale Corp., EBITDA calculation

US$ in millions

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.

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

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.

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

	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.

Costco Wholesale Corp. (NASDAQ:COST)

Enterprise Value to EBITDA (EV/EBITDA)

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

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical