Stock Analysis on Net

Lowe’s Cos. Inc. (NYSE:LOW)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

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

Lowe’s Cos. Inc., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Net earnings 6,957 7,726 6,437 8,442 5,835 4,281
Add: Income tax expense 2,196 2,449 2,599 2,766 1,904 1,342
Earnings before tax (EBT) 9,153 10,175 9,036 11,208 7,739 5,623
Add: Interest expense, net of amount capitalized 1,472 1,483 1,160 897 872 718
Earnings before interest and tax (EBIT) 10,625 11,658 10,196 12,105 8,611 6,341
Add: Depreciation and amortization 1,972 1,923 1,981 1,882 1,594 1,410
Earnings before interest, tax, depreciation and amortization (EBITDA) 12,597 13,581 12,177 13,987 10,205 7,751

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

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. Lowe’s Cos. Inc. EBITDA increased from 2023 to 2024 but then slightly decreased from 2024 to 2025 not reaching 2023 level.

Enterprise Value to EBITDA Ratio, Current

Lowe’s Cos. Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 164,331
Earnings before interest, tax, depreciation and amortization (EBITDA) 12,597
Valuation Ratio
EV/EBITDA 13.05
Benchmarks
EV/EBITDA, Competitors1
Amazon.com Inc. 16.20
Home Depot Inc. 16.28
TJX Cos. Inc. 19.29
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail 15.99
EV/EBITDA, Industry
Consumer Discretionary 17.37

Based on: 10-K (reporting date: 2025-01-31).

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

Lowe’s Cos. Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2025 Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 163,704 180,028 145,852 173,894 147,046 69,616
Earnings before interest, tax, depreciation and amortization (EBITDA)2 12,597 13,581 12,177 13,987 10,205 7,751
Valuation Ratio
EV/EBITDA3 13.00 13.26 11.98 12.43 14.41 8.98
Benchmarks
EV/EBITDA, Competitors4
Amazon.com Inc. 19.36 19.88 28.04 21.27 32.24
Home Depot Inc. 15.72 16.56 12.29 14.08 16.53 12.34
TJX Cos. Inc. 15.33 15.36 13.00 65.35 10.33
EV/EBITDA, Sector
Consumer Discretionary Distribution & Retail 18.29 17.44 20.13 20.16 24.23
EV/EBITDA, Industry
Consumer Discretionary 20.66 18.14 19.78 21.32 29.33

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31).

1 See details »

2 See details »

3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 163,704 ÷ 12,597 = 13.00

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. Lowe’s Cos. Inc. EV/EBITDA ratio increased from 2023 to 2024 but then slightly decreased from 2024 to 2025.