Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
O’Reilly Automotive Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| 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. | O’Reilly Automotive Inc. EBITDA increased from 2019 to 2020 and from 2020 to 2021. |
Enterprise Value to EBITDA Ratio, Current
O’Reilly Automotive Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 55,622,513) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,254,899) |
| Valuation Ratio | |
| EV/EBITDA | 17.09 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | 24.27 |
| Home Depot Inc. | 16.97 |
| Lowe’s Cos. Inc. | 13.49 |
| TJX Cos. Inc. | 18.21 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 26.85 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 23.81 |
Based on: 10-K (reporting date: 2021-12-31).
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
O’Reilly Automotive Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 46,704,845) | 35,063,126) | 31,466,172) | 32,224,896) | 23,363,639) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,254,899) | 2,742,166) | 2,201,179) | 2,075,153) | 1,962,998) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 14.35 | 12.79 | 14.30 | 15.53 | 11.90 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Amazon.com Inc. | 21.27 | 32.24 | 26.57 | — | — | |
| Home Depot Inc. | 16.53 | 12.34 | 13.36 | — | — | |
| Lowe’s Cos. Inc. | 14.41 | 8.98 | 18.22 | — | — | |
| TJX Cos. Inc. | 65.35 | 10.33 | 12.61 | — | — | |
| EV/EBITDA, Sector | ||||||
| Consumer Discretionary Distribution & Retail | 20.16 | 24.23 | 21.23 | — | — | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 21.16 | 29.01 | 17.75 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 46,704,845 ÷ 3,254,899 = 14.35
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. | O’Reilly Automotive Inc. EV/EBITDA ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |