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).
- Net Earnings
- Net earnings exhibited a generally upward trend from 2019 to 2023, more than tripling from approximately $334 million in 2019 to a peak of about $1.13 billion in 2022 and 2023. In 2024, there was a noticeable decline, with net earnings decreasing to approximately $950 million, marking a reduction from the previous two years but still remaining significantly higher than earlier periods.
- Earnings Before Tax (EBT)
- EBT followed a similar growth pattern, increasing steadily from roughly $429 million in 2019 to over $1.5 billion in 2023. However, this metric also declined in 2024 to approximately $1.27 billion. Despite the decrease, EBT in 2024 stayed well above the levels recorded in the five years prior.
- Earnings Before Interest and Tax (EBIT)
- EBIT rose consistently from around $436 million in 2019 to nearly $1.5 billion in 2023, registering a peak similar to that of EBT. In 2024, EBIT decreased to roughly $1.24 billion, indicating a downward adjustment while maintaining a value substantially higher than earlier years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a strong upward trajectory over the observed period, starting at approximately $625 million in 2019 and reaching a high of about $1.71 billion in 2023. In 2024, EBITDA declined to around $1.48 billion, reflecting a decrease following several years of growth but still representing a significant improvement relative to the initial years.
Overall, the data indicates robust financial growth from 2019 through 2023 across all profitability measures, with peak performance recorded in 2022 and 2023. The year 2024 saw a consistent decline across net earnings, EBT, EBIT, and EBITDA, suggesting a potential softening in operational performance or external factors impacting profitability, although the results remain considerably higher than those of the early years analyzed.
Enterprise Value to EBITDA Ratio, Current
Williams-Sonoma Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ 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. | 18.65 |
| Home Depot Inc. | 16.60 |
| Lowe’s Cos. Inc. | 12.82 |
| TJX Cos. Inc. | 17.90 |
| EV/EBITDA, Sector | |
| Consumer Discretionary Distribution & Retail | 17.82 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 19.11 |
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 | 32.24 | — | |
| Home Depot Inc. | 16.56 | 12.29 | 14.08 | 16.53 | 12.34 | — | |
| Lowe’s Cos. Inc. | 13.26 | 11.98 | 12.43 | 14.41 | 8.98 | — | |
| 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: 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.
- Enterprise Value (EV)
- The enterprise value exhibits considerable fluctuations over the observed periods. Starting at approximately $4.62 billion in early 2019, it declines sharply to about $3.11 billion by early 2020. Subsequently, it experiences a significant increase, peaking at roughly $13.12 billion in early 2021. After this peak, EV decreases again to $9.78 billion in 2022 and further down to $7.43 billion in 2023. The latest data from early 2024 shows a substantial rise, with EV reaching approximately $17.65 billion, the highest value in the entire series.
- Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
- EBITDA shows a generally positive trend from 2019 to 2023, increasing from around $625 million to nearly $1.71 billion. Notably, there is a pronounced growth between 2020 and 2022, where EBITDA more than doubles from $654 million to about $1.65 billion. In 2024, however, EBITDA declines slightly to $1.48 billion, which represents a decrease from the prior year but remains substantially above earlier years.
- EV/EBITDA Ratio
- The EV to EBITDA ratio experiences pronounced volatility throughout the periods. It starts at 7.4 in 2019, decreases to 4.76 in 2020, then rises sharply to almost 12 in 2021. By 2022, this ratio falls again to 5.93 and declines further to 4.34 in 2023, indicating improved valuation multiples relative to earnings. However, in early 2024, the ratio spikes back to nearly 12, corresponding with the significant increase in enterprise value juxtaposed with the reduction in EBITDA. These fluctuations suggest varying market perceptions and valuation conditions impacting the company’s financial metrics over time.