Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Home Depot Inc. (NYSE:HD)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level


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

Home Depot Inc., EBITDA calculation

US$ in millions

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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.

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) 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.


Enterprise Value to EBITDA Ratio, Historical

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

Microsoft Excel LibreOffice Calc
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.