Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Target Corp., 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).
The financial data reveals several notable trends in the earnings of the company over the six-year period from 2020 to 2025. Each of the key earnings metrics—Net Earnings, Earnings before Tax (EBT), Earnings before Interest and Tax (EBIT), and Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)—exhibits fluctuations that are significant for understanding the company’s performance trajectory.
- Net Earnings
- Net earnings showed a substantial increase from 3,281 million US dollars in 2020 to a peak of 6,946 million US dollars in 2022, indicating strong profitability growth. However, a sharp decline occurred in 2023, dropping to 2,780 million US dollars, before recovering somewhat in the subsequent years to stabilize around 4,100 million US dollars by 2025. This pattern suggests volatility in net profitability possibly due to external factors or one-time events impacting the 2023 fiscal year.
- Earnings before Tax (EBT)
- EBT followed a similar trajectory, climbing steadily from 4,190 million US dollars in 2020 to 8,907 million US dollars in 2022. Thereafter, it plummeted to 3,418 million US dollars in 2023, then partially rebounded to approximately 5,300 million US dollars in the following years. This trend further confirms a significant earnings disruption in 2023 with moderate recovery thereafter.
- Earnings before Interest and Tax (EBIT)
- EBIT trends are consistent with the previous metrics, growing from 4,667 million US dollars in 2020 to 9,328 million US dollars in 2022. The sharp downturn in 2023 to 3,896 million US dollars is followed by a rebound to levels near 5,700 million US dollars by 2025, suggesting the company’s core profitability was similarly affected during this period but is on a recovery path.
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA increased steadily from 7,271 million US dollars in 2020 to 11,970 million US dollars in 2022, marking sustained operational growth. However, it too encountered a decline in 2023 to 6,596 million US dollars. Although EBITDA recovered to 8,600 million US dollars in 2024 and slightly rose to 8,653 million US dollars in 2025, the post-2022 levels did not return to earlier highs, indicating possible cost pressures or reduced operating efficiencies.
Overall, the data underscores a peak in earnings performance across all metrics in 2022, followed by a pronounced drop in 2023. The subsequent recovery appears partial and uneven, reflecting a cautious optimism. The disparity between EBITDA levels and net earnings after 2023 may highlight challenges related to expenses beyond operating income, such as interest, taxes, depreciation, or amortization.
Enterprise Value to EBITDA Ratio, Current
Target Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 59,091) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 8,653) |
| Valuation Ratio | |
| EV/EBITDA | 6.83 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Costco Wholesale Corp. | 35.56 |
| Walmart Inc. | 19.57 |
| EV/EBITDA, Sector | |
| Consumer Staples Distribution & Retail | 23.01 |
| EV/EBITDA, Industry | |
| Consumer Staples | 20.11 |
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
Target Corp., 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 | 60,052) | 89,183) | 89,184) | 107,691) | 93,212) | 61,814) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 8,653) | 8,600) | 6,596) | 11,970) | 9,008) | 7,271) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 6.94 | 10.37 | 13.52 | 9.00 | 10.35 | 8.50 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Costco Wholesale Corp. | — | 32.85 | 22.66 | 21.19 | 22.64 | 21.69 | |
| Walmart Inc. | 17.31 | 14.63 | 13.92 | 13.94 | 12.01 | 11.12 | |
| EV/EBITDA, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 17.87 | 15.84 | 14.18 | 13.50 | 12.30 | |
| EV/EBITDA, Industry | |||||||
| Consumer Staples | — | 17.62 | 16.39 | 16.42 | 15.65 | 14.89 | |
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
= 60,052 ÷ 8,653 = 6.94
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a general upward trend from 61,814 million US dollars in February 2020 to a peak of 107,691 million in January 2022. Subsequently, it declined noticeably to 89,184 million in January 2023 and remained relatively stable around 89,183 million in February 2024, before dropping sharply to 60,052 million by February 2025.
- Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed growth from 7,271 million US dollars in February 2020 to a high of 11,970 million in January 2022. After this point, it decreased substantially to 6,596 million in January 2023 but rebounded to 8,600 million in February 2024 and remained relatively stable at 8,653 million in February 2025.
- EV/EBITDA Ratio
- The EV/EBITDA ratio increased from 8.5 in February 2020 to a peak of 13.52 in January 2023, indicating that the enterprise value grew disproportionately compared to EBITDA during this period. After January 2023, the ratio dropped significantly to 6.94 by February 2025, reflecting a sharper decline in enterprise value relative to EBITDA.
- Overall Analysis
- The financial data highlights volatility in both enterprise value and operating earnings over the five-year period. The initial upward trend in both EV and EBITDA through early 2022 suggests a period of growth and possibly stronger market valuation. The sharp subsequent declines in these metrics from 2022 to 2023 imply challenges or market corrections impacting the company’s valuation and earnings capacity. The rebound in EBITDA in the later years, coupled with a continued decline in enterprise value, suggests improved operational performance not yet fully reflected in valuation multiples. The fluctuating EV/EBITDA ratio underscores changing market perceptions of the company's value relative to its earnings potential.