Stock Analysis on Net

Target Corp. (NYSE:TGT)

Enterprise Value to EBITDA (EV/EBITDA) 

Microsoft Excel

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

Target Corp., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Net earnings 4,091 4,138 2,780 6,946 4,368 3,281
Less: Discontinued operations, net of tax 12
Add: Income tax expense 1,170 1,159 638 1,961 1,178 921
Earnings before tax (EBT) 5,261 5,297 3,418 8,907 5,546 4,190
Add: Net interest expense 411 502 478 421 977 477
Earnings before interest and tax (EBIT) 5,672 5,799 3,896 9,328 6,523 4,667
Add: Depreciation and amortization 2,981 2,801 2,700 2,642 2,485 2,604
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,653 8,600 6,596 11,970 9,008 7,271

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 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).

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. Target Corp. EBITDA increased from 2023 to 2024 and from 2024 to 2025.

Enterprise Value to EBITDA Ratio, Current

Target Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 58,399
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,653
Valuation Ratio
EV/EBITDA 6.75
Benchmarks
EV/EBITDA, Competitors1
Costco Wholesale Corp. 33.65
Walmart Inc. 17.28
EV/EBITDA, Sector
Consumer Staples Distribution & Retail 20.91
EV/EBITDA, Industry
Consumer Staples 19.19

Based on: 10-K (reporting date: 2025-02-01).

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

Target Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 60,052 89,183 89,184 107,691 93,212 61,814
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,653 8,600 6,596 11,970 9,008 7,271
Valuation Ratio
EV/EBITDA3 6.94 10.37 13.52 9.00 10.35 8.50
Benchmarks
EV/EBITDA, Competitors4
Costco Wholesale Corp. 32.85 22.66 21.19 22.64 21.69
Walmart Inc. 17.31 14.63 13.92 13.94 12.01 11.12
EV/EBITDA, Sector
Consumer Staples Distribution & Retail 17.87 15.84 14.18 13.50 12.30
EV/EBITDA, Industry
Consumer Staples 17.62 16.39 16.42 15.65 14.89

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 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).

1 See details »

2 See details »

3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 60,052 ÷ 8,653 = 6.94

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. Target Corp. EV/EBITDA ratio decreased from 2023 to 2024 and from 2024 to 2025.