Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
RH, EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2023-01-28), 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).
| 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. | RH EBITDA increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Enterprise Value to EBITDA Ratio, Current
RH, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 7,094,484) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 697,602) |
| Valuation Ratio | |
| EV/EBITDA | 10.17 |
| 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 | 21.64 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 21.36 |
Based on: 10-K (reporting date: 2023-01-28).
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
RH, historical EV/EBITDA calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 7,068,341) | 7,899,389) | 13,601,921) | 3,549,916) | 3,033,712) | 2,906,594) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 697,602) | 985,009) | 547,101) | 458,430) | 331,407) | 163,370) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 10.13 | 8.02 | 24.86 | 7.74 | 9.15 | 17.79 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Amazon.com Inc. | 19.88 | 28.04 | 21.27 | 32.24 | 26.57 | — | |
| Home Depot Inc. | 12.29 | 14.08 | 16.53 | 12.34 | 13.36 | — | |
| Lowe’s Cos. Inc. | 11.98 | 12.43 | 14.41 | 8.98 | 18.22 | — | |
| TJX Cos. Inc. | 15.36 | 13.00 | 65.35 | 10.33 | 12.61 | — | |
| EV/EBITDA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 17.44 | 20.13 | 20.16 | 24.23 | 21.23 | — | |
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | 17.94 | 19.55 | 21.16 | 29.01 | 17.75 | — | |
Based on: 10-K (reporting date: 2023-01-28), 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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 7,068,341 ÷ 697,602 = 10.13
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. | RH EV/EBITDA ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |