Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Dollar Tree Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
- Net Income (Loss)
- The net income exhibits significant volatility over the analyzed periods. It increased substantially from 896,200 thousand US dollars in 2017 to a peak of 1,714,300 thousand US dollars in 2018. However, in 2019, the figure turned negative, recording a loss of 1,590,800 thousand US dollars. Following this downturn, the net income recovered strongly, reaching 827,000 thousand US dollars in 2020 and further increasing to 1,341,900 thousand US dollars in 2021. The figure remained relatively stable into 2022, slightly decreasing to 1,327,900 thousand US dollars.
- Earnings Before Tax (EBT)
- EBT trends mirror those of net income, indicating consistent tax impacts proportional to earnings. EBT rose from 1,329,400 thousand US dollars in 2017 to 1,704,000 thousand US dollars in 2018, then suffered a sharp decline to a negative 1,309,000 thousand US dollars in 2019. This was followed by recovery to 1,098,700 thousand US dollars in 2020 and a peak of 1,739,800 thousand US dollars in 2021 before decreasing slightly to 1,632,200 thousand US dollars in 2022.
- Earnings Before Interest and Tax (EBIT)
- The EBIT data reflect operational performance excluding financial structure and taxes. EBIT increased from 1,704,900 thousand US dollars in 2017 to 2,005,800 thousand US dollars in 2018 but turned negative at 939,000 thousand US dollars in 2019. Recovery was observed with a rise to 1,260,800 thousand US dollars in 2020 and further growth to 1,887,100 thousand US dollars in 2021, followed by a slight decrease to 1,811,100 thousand US dollars in 2022. The pattern shows similar volatility as net income and EBT, suggesting operational challenges in 2019.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA illustrates cash flow from operations before non-cash charges. There was a rise from 2,342,400 thousand US dollars in 2017 to a peak of 2,617,000 thousand US dollars in 2018, followed by a sharp decline to 317,900 thousand US dollars in 2019, indicating stressed operational cash flow. After this low point, EBITDA recovered markedly to 1,906,200 thousand US dollars in 2020 and grew further to 2,573,700 thousand US dollars in 2021 before slightly declining to 2,527,100 thousand US dollars in 2022. The 2019 period represents a significant outlier in operational cash generation.
Enterprise Value to EBITDA Ratio, Current
Dollar Tree Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 36,133,978) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 2,527,100) |
| Valuation Ratio | |
| EV/EBITDA | 14.30 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Costco Wholesale Corp. | 30.23 |
| Target Corp. | 6.24 |
| Walmart Inc. | 21.18 |
| EV/EBITDA, Sector | |
| Consumer Staples Distribution & Retail | 25.26 |
| EV/EBITDA, Industry | |
| Consumer Staples | 22.07 |
Based on: 10-K (reporting date: 2022-01-29).
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
Dollar Tree Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 36,437,266) | 27,261,718) | 21,223,520) | 28,668,857) | 27,305,122) | 23,540,007) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 2,527,100) | 2,573,700) | 1,906,200) | (317,900) | 2,617,000) | 2,342,400) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 14.42 | 10.59 | 11.13 | — | 10.43 | 10.05 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Costco Wholesale Corp. | 21.19 | 22.64 | 21.69 | — | — | — | |
| Target Corp. | 9.00 | 10.35 | 8.50 | — | — | — | |
| Walmart Inc. | 13.94 | 12.01 | 11.12 | — | — | — | |
| EV/EBITDA, Sector | |||||||
| Consumer Staples Distribution & Retail | 14.18 | 13.50 | 12.30 | — | — | — | |
| EV/EBITDA, Industry | |||||||
| Consumer Staples | 16.42 | 15.65 | 14.89 | — | — | — | |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 36,437,266 ÷ 2,527,100 = 14.42
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows an overall upward trend from 23,540,007 thousand US dollars in January 2017 to 36,437,266 thousand US dollars in January 2022. There is a noticeable dip in 2020 to 21,223,520 thousand, followed by substantial increases in the subsequent two years. The values indicate a significant rise in the company's valuation over the analyzed period, especially after 2020.
- Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
- The EBITDA figures exhibit fluctuations, starting at 2,342,400 thousand US dollars in 2017 and reaching a low of negative 317,900 thousand in 2019. This negative value indicates a period of operational losses. After this trough, EBITDA recovered strongly, rising to 1,906,200 thousand in 2020 and further increasing to 2,573,700 thousand in 2021, before slightly decreasing to 2,527,100 thousand in 2022. This pattern suggests operational challenges in 2019, followed by significant recovery and stabilization in later years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio remains relatively stable around the 10 to 11 range for most years, with the exception of missing data for 2019 due to negative EBITDA. The ratio rises from 10.05 in 2017 to 14.42 in 2022, indicating that the company's valuation relative to its operating earnings increased over time. This may reflect market optimism or valuation adjustments, especially given the higher ratio despite a slight decline in EBITDA in 2022.