Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

Enterprise Value to EBITDA (EV/EBITDA) 

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

Walmart Inc., EBITDA calculation

US$ in millions

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12 months ended: Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018
Consolidated net income attributable to Walmart 11,680 13,673 13,510 14,881 6,670 9,862
Add: Net income attributable to noncontrolling interest (388) 267 196 320 509 661
Add: Income tax expense 5,724 4,756 6,858 4,915 4,281 4,600
Earnings before tax (EBT) 17,016 18,696 20,564 20,116 11,460 15,123
Add: Interest expense, debt and finance lease 2,128 1,994 2,315 2,599 2,346 2,330
Earnings before interest and tax (EBIT) 19,144 20,690 22,879 22,715 13,806 17,453
Add: Depreciation and amortization 10,945 10,658 11,152 10,987 10,678 10,529
Earnings before interest, tax, depreciation and amortization (EBITDA) 30,089 31,348 34,031 33,702 24,484 27,982

Based on: 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31).

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. Walmart Inc. EBITDA decreased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Walmart Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 449,208
Earnings before interest, tax, depreciation and amortization (EBITDA) 30,089
Valuation Ratio
EV/EBITDA 14.93
Benchmarks
EV/EBITDA, Competitors1
Costco Wholesale Corp. 24.53
Target Corp. 11.57
EV/EBITDA, Sector
Consumer Staples Distribution & Retail 14.67
EV/EBITDA, Industry
Consumer Staples 16.76

Based on: 10-K (reporting date: 2023-01-31).

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

Walmart Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 418,832 436,928 408,857 374,682 336,181 305,207
Earnings before interest, tax, depreciation and amortization (EBITDA)2 30,089 31,348 34,031 33,702 24,484 27,982
Valuation Ratio
EV/EBITDA3 13.92 13.94 12.01 11.12 13.73 10.91
Benchmarks
EV/EBITDA, Competitors4
Costco Wholesale Corp. 22.66 21.19 22.64 21.69 20.13 15.84
Target Corp. 13.52 9.00 10.35 8.50 7.49 6.96
EV/EBITDA, Sector
Consumer Staples Distribution & Retail 14.18 13.50 12.30 13.72 10.98
EV/EBITDA, Industry
Consumer Staples 16.63 15.91 15.18 18.37 13.54

Based on: 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31), 10-K (reporting date: 2018-01-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 418,832 ÷ 30,089 = 13.92

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. Walmart Inc. EV/EBITDA ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.