Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Lowe’s Cos. Inc., EBITDA calculation
US$ in millions
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
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
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).
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. |