Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Lowe’s Cos. Inc., EBITDA calculation

US$ in millions

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.

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.

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).

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.

Lowe’s Cos. Inc. (NYSE:LOW)

Enterprise Value to EBITDA (EV/EBITDA)

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

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical