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

Home Depot Inc., EBITDA calculation

US$ in millions

12 months ended:	Feb 2, 2020	Feb 3, 2019	Jan 28, 2018	Jan 29, 2017	Jan 31, 2016	Feb 1, 2015
Net earnings	11,242	11,121	8,630	7,957	7,009	6,345
Add: Income tax expense	3,473	3,435	5,068	4,534	4,012	3,631
Earnings before tax (EBT)	14,715	14,556	13,698	12,491	11,021	9,976
Add: Interest expense	1,201	1,051	1,057	972	919	830
Earnings before interest and tax (EBIT)	15,916	15,607	14,755	13,463	11,940	10,806
Add: Depreciation and amortization	2,296	2,152	2,062	1,973	1,863	1,786
Earnings before interest, tax, depreciation and amortization (EBITDA)	18,212	17,759	16,817	15,436	13,803	12,592

Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).

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.’s EBITDA increased from 2018 to 2019 and from 2019 to 2020.

Home Depot Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	325,580
Earnings before interest, tax, depreciation and amortization (EBITDA)	18,212
Valuation Ratio
EV/EBITDA	17.88
Benchmarks
EV/EBITDA, Competitors¹
Amazon.com Inc.	39.54
Costco Wholesale Corp.	22.80
Dollar General Corp.	19.41
Lowe’s Cos. Inc.	17.99
Target Corp.	11.47
TJX Cos. Inc.	12.41
Walmart Inc.	12.92
EV/EBITDA, Sector
General Retailers	25.77
EV/EBITDA, Industry
Consumer Services	18.67

Based on: 10-K (filing date: 2020-03-25).

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.

Home Depot Inc., historical EV/EBITDA calculation, comparison to benchmarks

	Feb 2, 2020	Feb 3, 2019	Jan 28, 2018	Jan 29, 2017	Jan 31, 2016	Feb 1, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	224,695	237,232	226,291	199,083	182,559	162,386
Earnings before interest, tax, depreciation and amortization (EBITDA)²	18,212	17,759	16,817	15,436	13,803	12,592
Valuation Ratio
EV/EBITDA³	12.34	13.36	13.46	12.90	13.23	12.90
Benchmarks
EV/EBITDA, Competitors⁴
Amazon.com Inc.	—	26.68	28.54	43.43	31.19	32.86
Costco Wholesale Corp.	—	20.07	15.77	12.63	13.27	13.49
Dollar General Corp.	13.79	12.89	11.19	9.06	11.71	11.91
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	12.53
EV/EBITDA, Industry
Consumer Services	—	15.05	14.26	13.52	12.21	12.18

Based on: 10-K (filing date: 2020-03-25), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-23), 10-K (filing date: 2016-03-24), 10-K (filing date: 2015-03-26).

¹ See details »

² See details »

³ 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 224,695 ÷ 18,212 = 12.34

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.’s EV/EBITDA ratio decreased from 2018 to 2019 and from 2019 to 2020.

Home Depot Inc. (NYSE:HD)

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