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