Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
TJX Cos. Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
- Net income
- The net income shows a sharp decline in the period ending January 30, 2021, dropping dramatically from 3,272 million US dollars to 90 million US dollars. Subsequently, there is a strong recovery with a consistent upward trend, resulting in a net income of 4,864 million US dollars by February 1, 2025. This reflects resilience and a robust growth trajectory following the significant dip.
- Earnings before tax (EBT)
- The earnings before tax follow a similar pattern to net income, with a steep decrease to 89 million US dollars in the period ending January 30, 2021, from 4,406 million US dollars in the previous year. Following this, EBT shows a sustained increase, reaching 6,483 million US dollars by February 1, 2025. This indicates improved operational profitability and tax efficiency over time.
- Earnings before interest and tax (EBIT)
- EBIT also experiences a significant drop to 283 million US dollars in the 2021 period from 4,465 million US dollars previously. From that low point, there is a consistent growth in EBIT to 6,559 million US dollars by the 2025 period. This consistent growth suggests strong underlying operating performance and effective management of costs and revenues.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA declines to 1,154 million US dollars by January 30, 2021, from 5,333 million US dollars in the previous year, marking a significant drop. However, from 2021 onwards, EBITDA steadily increases each year, peaking at 7,663 million US dollars by February 1, 2025. This trend highlights improved operating cash flow generation capability and potentially enhanced operational efficiency.
Enterprise Value to EBITDA Ratio, Current
TJX Cos. Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 149,857) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,663) |
| Valuation Ratio | |
| EV/EBITDA | 19.56 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | 19.46 |
| Home Depot Inc. | 18.14 |
| Lowe’s Cos. Inc. | 14.38 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 18.83 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 48.72 |
Based on: 10-K (reporting date: 2025-02-01).
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
TJX Cos. Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 137,090) | 107,478) | 86,111) | 69,992) | 75,388) | 55,072) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,663) | 7,010) | 5,607) | 5,385) | 1,154) | 5,333) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 17.89 | 15.33 | 15.36 | 13.00 | 65.35 | 10.33 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Amazon.com Inc. | — | 19.36 | 19.88 | 28.04 | 21.27 | 32.24 | |
| Home Depot Inc. | 15.72 | 16.56 | 12.29 | 14.08 | 16.53 | 12.34 | |
| Lowe’s Cos. Inc. | 13.00 | 13.26 | 11.98 | 12.43 | 14.41 | 8.98 | |
| EV/EBITDA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 18.29 | 17.44 | 20.13 | 20.16 | 24.23 | |
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | — | 20.91 | 18.33 | 20.01 | 21.51 | 29.73 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 137,090 ÷ 7,663 = 17.89
4 Click competitor name to see calculations.
The annual financial data reveals several noteworthy trends regarding enterprise value, EBITDA, and their relationship as measured by the EV/EBITDA ratio over the six-year period ending in early 2025.
- Enterprise Value (EV)
- There is a consistent upward trajectory in enterprise value throughout the years analyzed. Starting from approximately $55 billion in early 2020, EV increased significantly to about $137 billion by early 2025. This represents an overall increase of nearly 150%, with especially marked growth observed from 2022 onward.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA shows some volatility across the periods. There is a dramatic drop from $5.3 billion in 2020 to just over $1.1 billion in 2021, which is an anomalous dip relative to other years. Subsequent years depict a recovery and gradual increase, rising to roughly $7.7 billion by 2025, surpassing the 2020 level. This pattern indicates a temporary disruption affecting earnings during 2021, followed by steady operational improvement.
- EV/EBITDA Ratio
- The EV/EBITDA ratio exhibits considerable fluctuation. It starts at a moderate 10.33 in 2020, spikes sharply to an abnormally high 65.35 in 2021 due to the EBITDA collapse, then normalizes somewhat between 13 and 17.89 in the following years. Despite the recovery in EBITDA, the ratio gradually rises towards 2025, implying that enterprise value has been growing at a faster rate than EBITDA in the later periods.
Overall, the data indicates a robust increase in company valuation over the six-year span, with EBITDA initially depressed but recovering and growing over time. The elevated EV/EBITDA ratio in the later years suggests investors are either anticipating further growth or attributing higher value multiples to the company’s earnings, reflecting increased confidence or strategic positioning in the market. The anomalous figures in 2021 warrant further investigation to identify underlying causes for the earnings decline in that period.