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 (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29).
The financial performance indicators demonstrate a generally positive trajectory over the observed period, with some moderation in recent years. Net earnings, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibited growth between 2021 and 2024, followed by a leveling off and slight decline in projected figures for 2025 and 2026.
- EBITDA Trend
- EBITDA increased from US$10,205 million in 2021 to a peak of US$13,987 million in 2022, representing a substantial year-over-year increase. Growth continued, albeit at a slower pace, reaching US$13,581 million in 2024. Projections indicate a slight decrease to US$12,597 million in 2025 and a further reduction to US$12,468 million in 2026. This suggests a potential stabilization or modest contraction in operational profitability.
- Relationship between Earnings Metrics
- A consistent pattern is observed where EBT is lower than EBIT, and EBIT is lower than EBITDA. This is expected, as each subsequent metric adds back non-operating expenses (interest, taxes, and depreciation/amortization, respectively). The differences between these metrics remained relatively stable across the period, indicating consistent cost structures related to interest, taxes, and depreciation.
- Net Earnings in Relation to EBITDA
- Net earnings consistently represent a smaller proportion of EBITDA. While net earnings also increased from 2021 to 2024, the rate of increase was not as pronounced as that of EBITDA. The projected leveling off and slight decline in net earnings from 2024 to 2026 mirrors the trend in EBITDA, suggesting that changes in operational profitability are reflected in the bottom line.
Overall, the indicators suggest a period of strong growth followed by a potential stabilization in financial performance. The slight projected declines in EBITDA and net earnings from 2024 to 2026 warrant further investigation to determine the underlying causes and potential implications for future profitability.
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Enterprise Value to EBITDA Ratio, Current
Lowe’s Cos. Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 169,764) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 12,468) |
| Valuation Ratio | |
| EV/EBITDA | 13.62 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | 13.43 |
| Home Depot Inc. | 15.28 |
| TJX Cos. Inc. | 22.36 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 13.92 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 19.39 |
Based on: 10-K (reporting date: 2026-01-30).
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
Lowe’s Cos. Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jan 30, 2026 | Jan 31, 2025 | Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 169,764) | 163,704) | 180,028) | 145,852) | 173,894) | 147,046) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 12,468) | 12,597) | 13,581) | 12,177) | 13,987) | 10,205) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 13.62 | 13.00 | 13.26 | 11.98 | 12.43 | 14.41 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Amazon.com Inc. | — | 13.44 | 19.36 | 19.88 | 28.04 | 21.27 | |
| Home Depot Inc. | 15.28 | 15.72 | 16.56 | 12.29 | 14.08 | 16.53 | |
| TJX Cos. Inc. | — | 17.89 | 15.33 | 15.36 | 13.00 | 65.35 | |
| EV/EBITDA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 13.86 | 18.29 | 17.44 | 20.13 | 20.16 | |
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | — | 45.15 | 20.91 | 18.33 | 20.01 | 21.51 | |
Based on: 10-K (reporting date: 2026-01-30), 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29).
3 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 169,764 ÷ 12,468 = 13.62
4 Click competitor name to see calculations.
The Enterprise Value to EBITDA ratio exhibited fluctuations over the observed period. Initially, the ratio decreased from 14.41 in January 2021 to 12.43 in January 2022, indicating a potentially more attractive valuation based on earnings generation. A further decrease to 11.98 was noted in February 2023, representing the lowest point within the analyzed timeframe. Subsequently, the ratio increased to 13.26 in February 2024, followed by a slight decrease to 13.00 in January 2025. The most recent observation, in January 2026, shows a ratio of 13.62.
- Enterprise Value (EV)
- Enterprise Value increased from US$147,046 million in January 2021 to US$173,894 million in January 2022. A subsequent decline to US$145,852 million occurred in February 2023, before rising again to US$180,028 million in February 2024. Values for January 2025 and January 2026 are US$163,704 million and US$169,764 million respectively, suggesting some volatility but remaining generally within the range observed between 2022 and 2024.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated an upward trend from US$10,205 million in January 2021 to US$13,987 million in January 2022. It then decreased to US$12,177 million in February 2023, and increased to US$13,581 million in February 2024. EBITDA figures for January 2025 and January 2026 are US$12,597 million and US$12,468 million, indicating a stabilization around the US$12.5 billion level.
- EV/EBITDA Ratio – Overall Trend
- The EV/EBITDA ratio generally remained within a range of 11.98 to 14.41 over the period. The initial decline in the ratio coincided with increases in both EV and EBITDA, but the subsequent increase in the ratio from 2023 onwards was driven by a faster growth in EV compared to EBITDA. The most recent increase suggests a potentially less favorable valuation relative to earnings generation compared to the period between 2022 and 2023.
The interplay between Enterprise Value and EBITDA suggests a dynamic valuation. While EBITDA experienced growth initially, the more recent trend indicates that Enterprise Value is increasing at a greater rate, leading to a higher EV/EBITDA ratio. This shift warrants further investigation to understand the underlying drivers of Enterprise Value growth and their implications for future performance.
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