Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Paying user area

Try for free

Apache Corp. pages available for free this week:

The data is hidden behind: . Unhide it.

Get full access to the entire website from $10.42/mo, or
get 1-month access to Apache Corp. for $22.49.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

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

Apache Corp., EBITDA calculation

US$ in millions

	12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
	Net income (loss) attributable to Apache shareholders
	Add: Net income attributable to noncontrolling interest
	Less: Net loss from discontinued operations, net of tax
	Add: Income tax expense
	Earnings before tax (EBT)
	Add: Interest expense, net of capitalized interest
	Earnings before interest and tax (EBIT)
	Add: Depreciation, depletion, and amortization
	Earnings before interest, tax, depreciation and amortization (EBITDA)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Net Income (Loss) Attributable to Apache Shareholders: The net income exhibited a strong positive figure in 2011 at 4,584 million USD, followed by a significant decline in 2012 and 2013, reaching 2,001 million USD and 2,232 million USD respectively. From 2014 onwards, the company experienced negative results, with losses deepening to -5,403 million USD in 2014 and further deteriorating sharply to -23,119 million USD in 2015.
Earnings Before Tax (EBT): EBT followed a downward trend starting at 8,093 million USD in 2011, then decreasing to 4,877 million USD in 2012 and 4,216 million USD in 2013. The trend reversed negatively in 2014 with a loss of -2,906 million USD, which expanded substantially in 2015 to a loss of -28,226 million USD, indicating escalating financial challenges before tax considerations.
Earnings Before Interest and Tax (EBIT): EBIT mirrored the EBT trend, beginning at 8,263 million USD in 2011, declining steadily to 5,052 million USD in 2012 and 4,413 million USD in 2013. The data shows a shift to negative EBIT in 2014 (-2,770 million USD), worsening significantly to -27,967 million USD in 2015. This reflects worsening operating profitability before accounting for interest expenses and taxes.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA): EBITDA started at 12,467 million USD in 2011 and remained relatively resilient in 2012 at 12,161 million USD. However, a downward trend began in 2013 with a decrease to 11,113 million USD, followed by a substantial drop to 7,388 million USD in 2014, and a further steep decline to 1,405 million USD in 2015. This sharp decrease indicates reduced cash profitability and operational cash flow generation capacity.
Overall Observations: The financial data reveals a consistent pattern of declining profitability and operational performance over the five-year period. Initially strong earnings and cash flow measures deteriorated annually, turning negative in 2014 and 2015. The drastic losses reported in 2015 across all earnings measures highlight significant financial distress or operational challenges faced during that year.

Download chart

Enterprise Value to EBITDA Ratio, Current

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)
Earnings before interest, tax, depreciation and amortization (EBITDA)
Valuation Ratio
EV/EBITDA
Benchmarks
EV/EBITDA, Competitors¹
Chevron Corp.
ConocoPhillips
Exxon Mobil Corp.
Occidental Petroleum Corp.

Based on: 10-K (reporting date: 2015-12-31).

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

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

		Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
	Selected Financial Data (US$ in millions)
	Enterprise value (EV)¹
	Earnings before interest, tax, depreciation and amortization (EBITDA)²
	Valuation Ratio
	EV/EBITDA³
	Benchmarks
	EV/EBITDA, Competitors⁴
	Chevron Corp.
	ConocoPhillips
	Exxon Mobil Corp.
	Occidental Petroleum Corp.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

¹ See details »

² See details »

³ 2015 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =

⁴ Click competitor name to see calculations.

Enterprise Value (EV): The enterprise value shows a consistent downward trend over the five-year period. Starting at 49,628 million US dollars in 2011, it gradually decreased each year, reaching 23,904 million US dollars by the end of 2015. This represents a significant reduction, nearly halving the initial value. The most notable decline occurred between 2014 and 2015.
Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA): EBITDA exhibited a general decline from 12,467 million US dollars in 2011 to 1,405 million US dollars in 2015. Although the decrease was somewhat steady from 2011 through 2014, a sharp drop is observable in 2015. The EBITDA value in 2015 represents a substantial contraction compared to previous years, indicating a significant reduction in operational profitability.
EV/EBITDA Ratio: The EV/EBITDA ratio fluctuated over the period but trended upwards overall. From a ratio of 3.98 in 2011, it decreased slightly in 2012 to 3.48 and then rose moderately in 2013 to 3.7. In 2014, the ratio increased more noticeably to 5.07, followed by a dramatic spike to 17.01 in 2015. This sharp increase in the ratio during the final year suggests that the enterprise value did not decline in proportion to the sharper decline in EBITDA, leading to a much higher valuation multiple.
Overall Analysis: Over the five years, the company experienced a notable decline in both enterprise value and EBITDA, with EBITDA decreasing more steeply, especially in the last year. The rising EV/EBITDA ratio highlights a potential mismatch between valuation and earnings, which may reflect market perceptions, changes in operational efficiency, or other external factors impacting profitability. The significant drop in EBITDA in 2015 alongside a less severe decline in enterprise value suggests increased investor risk or a reevaluation of the company’s financial outlook during that period.