Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Enterprise Value to EBITDA (EV/EBITDA) 

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

Lowe’s Cos. Inc., EBITDA calculation

US$ in millions

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12 months ended: Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Net earnings 8,442  5,835  4,281  2,314  3,447  3,093 
Add: Income tax expense 2,766  1,904  1,342  1,080  2,042  2,108 
Earnings before tax (EBT) 11,208  7,739  5,623  3,394  5,489  5,201 
Add: Interest expense, net of amount capitalized 897  872  718  652  649  657 
Earnings before interest and tax (EBIT) 12,105  8,611  6,341  4,046  6,138  5,858 
Add: Depreciation and amortization 1,882  1,594  1,410  1,607  1,540  1,590 
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,987  10,205  7,751  5,653  7,678  7,448 

Based on: 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

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. Lowe’s Cos. Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Lowe’s Cos. Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 145,862 
Earnings before interest, tax, depreciation and amortization (EBITDA) 13,987 
Valuation Ratio
EV/EBITDA 10.43
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 16.31
Bed Bath & Beyond Inc.
Booking Holdings Inc. 31.36
Dollar Tree Inc. 13.56
Home Depot Inc. 12.88
Target Corp. 6.69
Ulta Beauty Inc. 12.95
EV/EBITDA, Sector
Retailing 15.67
EV/EBITDA, Industry
Consumer Discretionary 16.59

Based on: 10-K (reporting date: 2022-01-28).

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

Lowe’s Cos. Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 173,894  147,046  69,616  102,974  86,157  84,991 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 13,987  10,205  7,751  5,653  7,678  7,448 
Valuation Ratio
EV/EBITDA3 12.43 14.41 8.98 18.22 11.22 11.41
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc. 21.31 32.20 26.68 28.54 43.43
Bed Bath & Beyond Inc. 33.56 10.74 3.00 4.71
Booking Holdings Inc. 45.39 73.17 10.49 15.94 18.77
Dollar Tree Inc. 14.42 10.59 11.13 10.43 10.05
Home Depot Inc. 14.08 16.53 12.34 13.36 13.46 12.90
Target Corp. 9.00 10.35 8.50 7.49 6.96 5.59
Ulta Beauty Inc. 12.94 30.22 7.76 17.58 11.53 19.81
EV/EBITDA, Sector
Retailing 19.33 24.12 20.07 18.55 20.86
EV/EBITDA, Industry
Consumer Discretionary 20.54 28.08 17.22 14.73 14.84

Based on: 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02), 10-K (reporting date: 2017-02-03).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 173,894 ÷ 13,987 = 12.43

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. Lowe’s Cos. Inc. EV/EBITDA ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.