Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).
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. | Walgreens Boots Alliance Inc. EBITDA increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 50,256) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,292) |
Valuation Ratio | |
EV/EBITDA | 6.89 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Costco Wholesale Corp. | 32.01 |
Dollar General Corp. | 7.43 |
Target Corp. | 9.46 |
Walmart Inc. | 19.41 |
EV/EBITDA, Sector | |
Consumer Staples Distribution & Retail | 30.21 |
EV/EBITDA, Industry | |
Consumer Staples | 28.31 |
Based on: 10-K (reporting date: 2019-08-31).
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
Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 66,257) | 81,590) | 80,464) | 97,390) | 104,315) | 59,181) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,292) | 8,415) | 7,208) | 7,502) | 7,682) | 5,029) | |
Valuation Ratio | |||||||
EV/EBITDA3 | 9.09 | 9.70 | 11.16 | 12.98 | 13.58 | 11.77 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
Costco Wholesale Corp. | 20.13 | — | — | — | — | — | |
Dollar General Corp. | 12.89 | — | — | — | — | — | |
Target Corp. | 7.49 | — | — | — | — | — | |
Walmart Inc. | 13.73 | — | — | — | — | — | |
EV/EBITDA, Sector | |||||||
Consumer Staples Distribution & Retail | 13.67 | — | — | — | — | — | |
EV/EBITDA, Industry | |||||||
Consumer Staples | 18.29 | — | — | — | — | — |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 66,257 ÷ 7,292 = 9.09
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. | Walgreens Boots Alliance Inc. EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019. |