Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29).
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. | Home Depot Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 353,439 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 25,946 |
Valuation Ratio | |
EV/EBITDA | 13.62 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Amazon.com Inc. | 19.26 |
Booking Holdings Inc. | 34.73 |
GameStop Corp. | — |
Lowe’s Cos. Inc. | 10.68 |
Target Corp. | 7.10 |
EV/EBITDA, Sector | |
Retailing | 17.94 |
EV/EBITDA, Industry | |
Consumer Discretionary | 19.20 |
Based on: 10-K (reporting date: 2022-01-30).
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
Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | Jan 28, 2018 | Jan 29, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 365,367 | 344,655 | 224,695 | 237,232 | 226,291 | 199,083 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 25,946 | 20,844 | 18,212 | 17,759 | 16,817 | 15,436 | |
Valuation Ratio | |||||||
EV/EBITDA3 | 14.08 | 16.53 | 12.34 | 13.36 | 13.46 | 12.90 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Amazon.com Inc. | — | 21.31 | 32.20 | 26.68 | 28.54 | 43.43 | |
Booking Holdings Inc. | — | 45.39 | 73.17 | 10.49 | 15.94 | 18.77 | |
GameStop Corp. | — | — | — | — | 4.35 | 3.11 | |
Lowe’s Cos. Inc. | 12.43 | 14.41 | 8.98 | 18.22 | 11.22 | 11.41 | |
Target Corp. | 9.00 | 10.35 | 8.50 | 7.49 | 6.96 | 5.59 | |
EV/EBITDA, Sector | |||||||
Retailing | — | 19.59 | 24.61 | 19.82 | 19.18 | 21.56 | |
EV/EBITDA, Industry | |||||||
Consumer Discretionary | — | 20.71 | 28.49 | 17.05 | 14.91 | 14.95 |
Based on: 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03), 10-K (reporting date: 2018-01-28), 10-K (reporting date: 2017-01-29).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 365,367 ÷ 25,946 = 14.08
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. | Home Depot Inc. EV/EBITDA ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level. |