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

Wal-Mart Stores Inc., EBITDA calculation

USD $ in millions

 
12 months ended Jan 31, 2015 Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010
Consolidated net income attributable to Walmart 16,363  16,022  16,999  15,699  16,389  14,335 
Add: Net income attributable to noncontrolling interest 736  673  757  688  604  513 
Less: Income (loss) from discontinued operations, net of income taxes 285  144  (67) 1,034  (79)
Add: Income tax expense 7,985  8,105  7,981  7,944  7,579  7,139 
Earnings before tax (EBT) 24,799  24,656  25,737  24,398  23,538  22,066 
Add: Interest expense, debt and capital leases 2,461  2,335  2,251  2,322  2,205  2,065 
Earnings before interest and tax (EBIT) 27,260  26,991  27,988  26,720  25,743  24,131 
Add: Depreciation and amortization 9,173  8,870  8,501  8,130  7,641  7,157 
Earnings before interest, tax, depreciation and amortization (EBITDA) 36,433  35,861  36,489  34,850  33,384  31,288 
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. Wal-Mart Stores Inc.'s EBITDA declined from 2013 to 2014 but then increased from 2014 to 2015 not reaching 2013 level.

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EV to EBITDA Ratio, Current

Wal-Mart Stores Inc., current EV/EBITDA calculation, comparison to benchmarks

 
Selected Financial Data (USD $ in millions)
Enterprise value (EV) 277,282 
Earnings before interest, tax, depreciation and amortization (EBITDA) 36,433 
Ratio
EV/EBITDA 7.61
Benchmarks
EV/EBITDA, Competitors
Amazon.com Inc. 41.45
Target Corp. 9.54
EV/EBITDA, Sector
Broadline Retailers 11.75
EV/EBITDA, Industry
Consumer Services 12.13

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

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EV to EBITDA Ratio, Historical

Wal-Mart Stores Inc., historical EV/EBITDA calculation, comparison to benchmarks

 
Jan 31, 2015 Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010
Selected Financial Data (USD $ in millions)
Enterprise value (EV)1 306,165  300,184  297,926  259,306  227,973  245,759 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 36,433  35,861  36,489  34,850  33,384  31,288 
Ratio
EV/EBITDA3 8.40 8.37 8.16 7.44 6.83 7.85
Benchmarks
EV/EBITDA, Competitors
Amazon.com Inc. 33.45 41.58 44.51 35.76 32.82
Target Corp. 9.21 7.85 8.09 7.51 6.78 8.04
EV/EBITDA, Sector
Broadline Retailers 10.89 10.83 9.63 8.22 9.20
EV/EBITDA, Industry
Consumer Services 10.82 10.42 8.98 7.89 8.32

2015 Calculations

3 EV/EBITDA = EV ÷ EBITDA
= 306,165 ÷ 36,433 = 8.40

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Wal-Mart Stores Inc.'s EV/EBITDA ratio increased from 2013 to 2014 and from 2014 to 2015.

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