Stock Analysis on Net

Home Depot Inc. (NYSE:HD)

Enterprise Value to EBITDA (EV/EBITDA)

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

Home Depot Inc., EBITDA calculation

US$ in millions

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12 months ended: Jan 30, 2022 Jan 31, 2021 Feb 2, 2020 Feb 3, 2019 Jan 28, 2018 Jan 29, 2017
Net earnings 16,433  12,866  11,242  11,121  8,630  7,957 
Add: Income tax expense 5,304  4,112  3,473  3,435  5,068  4,534 
Earnings before tax (EBT) 21,737  16,978  14,715  14,556  13,698  12,491 
Add: Interest expense 1,347  1,347  1,201  1,051  1,057  972 
Earnings before interest and tax (EBIT) 23,084  18,325  15,916  15,607  14,755  13,463 
Add: Depreciation and amortization 2,862  2,519  2,296  2,152  2,062  1,973 
Earnings before interest, tax, depreciation and amortization (EBITDA) 25,946  20,844  18,212  17,759  16,817  15,436 

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

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

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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

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

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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).

1 See details »

2 See details »

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.