Stock Analysis on Net
Stock Analysis on Net
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Lowe’s Cos. Inc. (NYSE:LOW)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Net earnings 4,281  2,314  3,447  3,093  2,546  2,698 
Add: Income tax expense 1,342  1,080  2,042  2,108  1,873  1,578 
Earnings before tax (EBT) 5,623  3,394  5,489  5,201  4,419  4,276 
Add: Interest expense, net of amount capitalized 718  652  649  657  556  522 
Earnings before interest and tax (EBIT) 6,341  4,046  6,138  5,858  4,975  4,798 
Add: Depreciation and amortization 1,410  1,607  1,540  1,590  1,587  1,586 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,751  5,653  7,678  7,448  6,562  6,384 

Based on: 10-K (filing date: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

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.’s EBITDA decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 143,550 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,751 
Valuation Ratio
EV/EBITDA 18.52
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 41.83
Costco Wholesale Corp. 21.16
Dollar General Corp. 18.94
Home Depot Inc. 17.76
Target Corp. 14.19
TJX Cos. Inc. 14.94
Walmart Inc. 13.58
EV/EBITDA, Sector
General Retailers 27.19
EV/EBITDA, Industry
Consumer Services 20.03

Based on: 10-K (filing date: 2020-03-23).

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

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 69,616  102,974  86,157  84,991  79,846  81,573 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,751  5,653  7,678  7,448  6,562  6,384 
Valuation Ratio
EV/EBITDA3 8.98 18.22 11.22 11.41 12.17 12.78
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc. 26.68 28.54 43.43 31.19 32.86
Costco Wholesale Corp. 21.60 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
Home Depot Inc. 12.34 13.36 13.46 12.90 13.23 12.90
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: 2020-03-23), 10-K (filing date: 2019-04-02), 10-K (filing date: 2018-04-02), 10-K (filing date: 2017-04-04), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31).

1 See details »

2 See details »

3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 69,616 ÷ 7,751 = 8.98

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.’s EV/EBITDA ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.