Enterprise Value to EBITDA (EV/EBITDA)
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Ulta Beauty Inc. pages available for free this week:
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Dividend Discount Model (DDM)
- Debt to Equity since 2008
- Price to Earnings (P/E) since 2008
- Price to Operating Profit (P/OP) since 2008
- Price to Sales (P/S) since 2008
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Ulta Beauty Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
- Net Income Trends
- Net income exhibited a general upward trajectory from 2018 through 2020, increasing from approximately 555 million to over 705 million USD. There was a significant decline in 2021, where net income sharply dropped to about 176 million USD. However, the following two years saw a strong recovery, with net income rising substantially to nearly 986 million USD in 2022 and exceeding 1.24 billion USD in 2023.
- Earnings Before Tax (EBT) and Earnings Before Interest and Tax (EBIT)
- The earnings before tax and interest (EBT/EBIT) followed a similar pattern to net income. From 2018 to 2020, the figures steadily climbed from roughly 787 million USD to 906 million USD. In 2021, these earnings contracted sharply to about 231 million USD. Subsequently, there was a marked recovery in 2022 and 2023, with EBT/EBIT values increasing to approximately 1.30 billion and 1.64 billion USD, respectively.
- EBITDA Trends
- EBITDA showed consistent growth from 2018 through 2020, increasing from about 1.04 billion USD to 1.20 billion USD. In 2021, it experienced a decline to approximately 529 million USD, mirroring the reduction seen in net income and EBIT. The recovery was pronounced in the subsequent years, with EBITDA rising to around 1.56 billion USD in 2022 and further to approximately 1.88 billion USD in 2023.
- Overall Insights
- The data indicate strong financial performance with consistent growth up to 2020, followed by a sharp downturn in 2021 across all profitability metrics. This downturn was temporary, as indicated by the robust recovery and new highs recorded in 2022 and 2023. The substantial rebound suggests effective management actions or market conditions that restored and enhanced the company's earnings capacity after the 2021 dip.
Enterprise Value to EBITDA Ratio, Current
Ulta Beauty Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | |
| 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: 2023-01-28).
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
Ulta Beauty Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| 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: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value Trends
- The enterprise value (EV) exhibited considerable fluctuations over the reported periods. Initial growth is seen from approximately $12.0 billion in early 2018 to around $20.0 billion in early 2019, followed by a marked decline to roughly $9.3 billion in early 2020. Subsequently, EV rebounded strongly, increasing to about $15.9 billion in early 2021, then further rising to $20.2 billion in early 2022, and reaching a peak near $25.1 billion by early 2023.
- EBITDA Trends
- Earnings before interest, tax, depreciation, and amortization (EBITDA) showed an overall upward trajectory despite volatility. EBITDA increased from approximately $1.04 billion in 2018 to about $1.14 billion in 2019 and further to $1.20 billion in 2020. A significant drop occurred in 2021, down to roughly $529 million, representing less than half of the prior year's figure. Thereafter, EBITDA recovered strongly, reaching $1.56 billion in 2022 and continuing to $1.88 billion in 2023, exceeding previous highs.
- EV to EBITDA Ratio Analysis
- The EV/EBITDA ratio, which indicates valuation relative to earnings, fluctuated considerably across the periods. Starting at a moderate 11.53 in 2018, it increased significantly to 17.58 in 2019, before declining sharply to 7.76 in 2020. A pronounced spike to 30.22 occurred in 2021, coinciding with a sharp EBITDA decline. This ratio normalized to 12.94 in 2022 and slightly increased to 13.30 by 2023.
- Overall Observations
- The data reflects volatility in both enterprise value and EBITDA, with a particularly notable dip in earnings during 2021, likely reflecting adverse business or market conditions within that year. The substantial rebound in 2022 and 2023 highlights recovery and growth momentum. Valuation multiples also responded dynamically to earnings fluctuations, with the EV/EBITDA ratio peaking when earnings were suppressed and retreating as profitability resumed. This pattern suggests sensitivity of the company's valuation to its operating earnings performance.