Stock Analysis on Net
Stock Analysis on Net

Target Corp. (NYSE:TGT)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel LibreOffice Calc

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

Target Corp., EBITDA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Net earnings 4,368  3,281  2,937  2,934  2,737  3,363 
Less: Discontinued operations, net of tax —  12  68  42 
Add: Income tax expense 1,178  921  746  718  1,296  1,602 
Earnings before tax (EBT) 5,546  4,190  3,676  3,646  3,965  4,923 
Add: Net interest expense 977  477  461  666  1,004  607 
Earnings before interest and tax (EBIT) 6,523  4,667  4,137  4,312  4,969  5,530 
Add: Depreciation and amortization 2,485  2,604  2,474  2,445  2,298  2,213 
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,008  7,271  6,611  6,757  7,267  7,743 

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

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. Target Corp.’s EBITDA increased from 2019 to 2020 and from 2020 to 2021.

Enterprise Value to EBITDA Ratio, Current

Target Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 124,085 
Earnings before interest, tax, depreciation and amortization (EBITDA) 9,008 
Valuation Ratio
EV/EBITDA 13.77
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 33.34
Booking Holdings Inc. 76.16
Home Depot Inc. 19.15
Lowe’s Cos. Inc. 16.50
TJX Cos. Inc. 63.27
EV/EBITDA, Sector
Retailing 28.37
EV/EBITDA, Industry
Consumer Discretionary 31.35

Based on: 10-K (filing date: 2021-03-10).

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

Target Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 93,212  61,814  49,539  47,010  40,645  57,835 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 9,008  7,271  6,611  6,757  7,267  7,743 
Valuation Ratio
EV/EBITDA3 10.35 8.50 7.49 6.96 5.59 7.47
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc. 32.20 26.68 28.54 43.43 31.19
Booking Holdings Inc. 73.17 10.49 15.94 18.77 25.72
Home Depot Inc. 16.53 12.34 13.36 13.46 12.90 13.23
Lowe’s Cos. Inc. 14.41 8.98 18.22 11.22 11.41 12.17
TJX Cos. Inc. 65.35 10.33 12.61 11.11 11.16 11.83
EV/EBITDA, Sector
Retailing 23.70 19.22 18.70 20.97 17.50
EV/EBITDA, Industry
Consumer Discretionary 27.02 17.74 16.09 16.61 14.33

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 93,212 ÷ 9,008 = 10.35

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. Target Corp.’s EV/EBITDA ratio increased from 2019 to 2020 and from 2020 to 2021.