Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Williams-Sonoma Inc., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2019-02-03).
The financial trajectory between 2019 and 2024 is characterized by a period of rapid expansion followed by a moderate correction in the most recent fiscal year. EBITDA experienced substantial growth, rising from 624,761 thousand US dollars in 2019 to a peak of 1,712,575 thousand US dollars in 2023, before declining to 1,476,783 thousand US dollars in 2024.
- EBITDA Growth Dynamics
- A significant acceleration in operational profitability occurred between 2020 and 2022, where EBITDA increased from 653,633 thousand US dollars to 1,649,203 thousand US dollars. This period represents the most aggressive growth phase, with the 2022 figure reflecting an increase of approximately 152% over the 2020 baseline.
- Correlation Across Profitability Metrics
- A strong positive correlation is observed between EBITDA, EBIT, EBT, and net earnings. All four metrics peaked in 2023, indicating that the growth was driven by operational scaling rather than one-time tax advantages or interest income fluctuations. The parallel movement across these levels suggests a consistent relationship between operating performance and bottom-line results.
- Operating Leverage and Non-Cash Expenses
- The differential between EBITDA and EBIT, representing depreciation and amortization, remained relatively stable compared to the volatility of the earnings themselves. This gap grew gradually from 188,808 thousand US dollars in 2019 to 232,590 thousand US dollars in 2024, suggesting that the surge in EBITDA was achieved without a proportional increase in capital-intensive investment.
- Recent Performance Contraction
- A downturn is evident in the period ending January 28, 2024. EBITDA decreased by approximately 13.8% from its 2023 peak. This contraction is mirrored in net earnings, which fell from 1,127,904 thousand US dollars to 949,762 thousand US dollars, signaling a broad reduction in profitability across all measured tiers.
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Enterprise Value to EBITDA Ratio, Current
Williams-Sonoma Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 17,246,502) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,476,783) |
| Valuation Ratio | |
| EV/EBITDA | 11.68 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Amazon.com Inc. | 16.07 |
| Home Depot Inc. | 13.76 |
| Lowe’s Cos. Inc. | 11.58 |
| TJX Cos. Inc. | 16.41 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 19.31 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 21.51 |
Based on: 10-K (reporting date: 2024-01-28).
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
Williams-Sonoma Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | Feb 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 17,654,317) | 7,427,720) | 9,779,733) | 13,118,520) | 3,113,818) | 4,624,223) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,476,783) | 1,712,575) | 1,649,203) | 1,099,352) | 653,633) | 624,761) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 11.95 | 4.34 | 5.93 | 11.93 | 4.76 | 7.40 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Amazon.com Inc. | 19.36 | 19.88 | 28.04 | 21.27 | — | — | |
| Home Depot Inc. | 16.56 | 12.29 | 14.08 | 16.53 | — | — | |
| Lowe’s Cos. Inc. | 13.26 | 11.98 | 12.43 | 14.41 | — | — | |
| TJX Cos. Inc. | 15.33 | 15.36 | 13.00 | 65.35 | — | — | |
| EV/EBITDA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 18.29 | 17.44 | 20.13 | 20.16 | — | — | |
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | 20.91 | 18.33 | 20.01 | 21.51 | — | — | |
Based on: 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), 10-K (reporting date: 2019-02-03).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 17,654,317 ÷ 1,476,783 = 11.95
4 Click competitor name to see calculations.
The financial performance over the six-year period ending January 28, 2024, is characterized by significant volatility in the Enterprise Value (EV) to EBITDA ratio. While operational earnings demonstrated a consistent growth trajectory for most of the period, the valuation ratio fluctuated sharply, indicating that market-driven Enterprise Value shifted more aggressively than the underlying operational profitability.
- Enterprise Value Fluctuations
- Enterprise Value experienced extreme variability, starting at 4.6 billion USD in 2019 and peaking initially at 13.1 billion USD in 2021. Following a two-year decline to 7.4 billion USD in 2023, a substantial surge occurred in 2024, with the value reaching a period high of approximately 17.7 billion USD.
- EBITDA Growth and Contraction
- Operational earnings showed a steady upward trend from 2019 through 2023, rising from 624.8 million USD to a peak of 1.7 billion USD. This growth phase was followed by a moderate decline in 2024, where EBITDA decreased to 1.48 billion USD.
- EV/EBITDA Ratio Dynamics
- The EV/EBITDA ratio exhibited a cyclical pattern of expansion and compression. High valuation multiples were recorded in 2021 (11.93) and 2024 (11.95), while the ratio contracted to its lowest point of 4.34 in 2023. The divergence between the steady growth of EBITDA and the erratic movements of Enterprise Value suggests that the ratio peaks were primarily driven by market valuation shifts rather than proportional increases in operational earnings.
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