Enterprise Value to EBITDA (EV/EBITDA)
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- Income Statement
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Net Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Home Depot Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
- Net Earnings
- Net earnings exhibited a generally increasing trend from 11,242 million US dollars in February 2020 to a peak of 17,105 million in January 2023. However, a decline followed over the next two years, falling to 15,143 million in January 2024 and further to 14,806 million by February 2025. This indicates a peak in profitability during early 2023 before a gradual reduction.
- Earnings Before Tax (EBT)
- EBT increased steadily from 14,715 million in February 2020 to a high of 22,477 million in January 2023. Similar to net earnings, this was followed by a decrease to 19,924 million in January 2024 and 19,406 million by February 2025. The trend suggests consistent growth until 2023 with a subsequent contraction, reflecting changes in pre-tax profitability.
- Earnings Before Interest and Tax (EBIT)
- EBIT showed growth from 15,916 million in February 2020 to 24,094 million in January 2023. After this peak, it declined to 21,867 million in January 2024 and slightly more to 21,727 million in February 2025. The peak and subsequent decline align with trends seen in net earnings and EBT, indicating a decrease in operating profitability following the 2023 high.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA rose consistently from 18,212 million in February 2020 to 27,069 million in January 2023, illustrating expanding cash-based operating earnings. Although there was a decline to 25,114 million in January 2024, the figure increased slightly to 25,488 million in February 2025. This suggests that while EBITDA experienced a minor dip after 2023, it stabilized and showed some recovery by 2025.
- Summary of Trends
- Across all profitability metrics, there was strong growth leading up to January 2023, marking a period of increased earnings and operational efficiency. Post-2023, net earnings, EBT, and EBIT all declined moderately, indicating potential challenges impacting profitability. In contrast, EBITDA, while also decreasing after 2023, demonstrated resilience with signs of stabilization by 2025. The divergence between EBITDA and EBIT/net earnings in the latest period may reflect changes in non-cash expenses, interest, or tax-related items.
Enterprise Value to EBITDA Ratio, Current
Home Depot Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | |
| Lowe’s Cos. Inc. | |
| TJX Cos. Inc. | |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | |
| EV/EBITDA, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2025-02-02).
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
Home Depot Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| TJX Cos. Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- Over the observed period, the enterprise value generally increased, starting at approximately $224.7 billion in early 2020 and reaching a peak of about $415.9 billion in early 2024. This represents a near doubling within four years before experiencing a slight decrease to roughly $400.8 billion in early 2025. Despite this minor decline in the last year, the overall trend points to substantial growth in the company's market valuation.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a consistent upward trajectory from around $18.2 billion in early 2020 to a peak of approximately $27.1 billion in early 2023. Following this peak, EBITDA decreased to approximately $25.1 billion in early 2024 but rose marginally again to about $25.5 billion in early 2025. This indicates a strong operational performance with some fluctuations in the latter years, but remaining significantly higher than the initial value.
- EV/EBITDA Ratio
- The EV/EBITDA ratio exhibited volatility across the timeline. It began at 12.34 in early 2020, increased sharply to 16.53 in early 2021, then declined to 14.08 in early 2022 and further to 12.29 in early 2023. Following this decrease, the ratio rose again to 16.56 in early 2024 and slightly declined to 15.72 in early 2025. These fluctuations suggest changes in market valuation relative to earnings, with peaks indicating periods where the enterprise value grew disproportionately to EBITDA, potentially reflecting market optimism or valuation adjustments.