Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Best Buy Co. Inc., EBITDA calculation

US$ in millions

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net earnings	2,454)	1,798)	1,541)	1,464)	1,000)	1,228)
Less: Gain from discontinued operations, net of tax	—)	—)	—)	—)	1)	21)
Add: Income tax expense	574)	579)	452)	424)	818)	609)
Earnings before tax (EBT)	3,028)	2,377)	1,993)	1,888)	1,817)	1,816)
Add: Interest expense	25)	52)	64)	73)	75)	72)
Earnings before interest and tax (EBIT)	3,053)	2,429)	2,057)	1,961)	1,892)	1,888)
Add: Depreciation and amortization	869)	839)	812)	770)	683)	654)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,922)	3,268)	2,869)	2,731)	2,575)	2,542)

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).

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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.	Best Buy Co. Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Best Buy Co. Inc., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	16,720)
Earnings before interest, tax, depreciation and amortization (EBITDA)	3,922)
Valuation Ratio
EV/EBITDA	4.26
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	34.86
EV/EBITDA, Industry
Consumer Discretionary	29.13

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.

Best Buy Co. 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 millions)
Enterprise value (EV)¹	21,230)	25,436)	12,068)	18,449)	17,707)	11,308)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	3,922)	3,268)	2,869)	2,731)	2,575)	2,542)
Valuation Ratio
EV/EBITDA³	5.41	7.78	4.21	6.76	6.88	4.45
Benchmarks
EV/EBITDA, Competitors⁴
Amazon.com Inc.	28.04	21.27	32.24	26.57	—	—
Home Depot Inc.	14.08	16.53	12.34	13.36	—	—
Lowe’s Cos. Inc.	12.43	14.41	8.98	18.22	—	—
TJX Cos. Inc.	13.00	65.35	10.33	12.61	—	—
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail	20.13	20.16	24.23	21.23	—	—
EV/EBITDA, Industry
Consumer Discretionary	19.55	21.16	29.01	17.75	—	—

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).

¹ See details »

² See details »

³ 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 21,230 ÷ 3,922 = 5.41

⁴ Click competitor name to see calculations.

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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.	Best Buy Co. Inc. EV/EBITDA ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Best Buy Co. Inc. (NYSE:BBY)

Enterprise Value to EBITDA (EV/EBITDA)

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

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical