Enterprise Value to EBITDA (EV/EBITDA)
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Devon Energy Corp. pages available for free this week:
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
- Aggregate Accruals
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Devon Energy Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The financial data over the five-year period reveals significant fluctuations in profitability and operating performance.
- Net Earnings (Loss) Attributable to Devon
- The net earnings show a highly volatile trend. The company recorded a strong profit of 3,064 million US dollars in 2018, followed by losses in 2019 (-355 million) and 2020 (-2,680 million). Subsequently, net earnings rebounded sharply to 2,813 million in 2021 and surged further to 6,015 million in 2022, marking the highest profit in the observed period.
- Earnings Before Tax (EBT)
- EBT mirrors the net earnings trend closely. After a positive figure of 920 million in 2018, earnings before tax turned negative in 2019 (-109 million) and worsened significantly in 2020 (-3,090 million). Recovery is visible in 2021 with an increase to 2,898 million and a pronounced increase to 7,775 million by 2022, indicating improving profitability before tax obligations.
- Earnings Before Interest and Tax (EBIT)
- EBIT follows a similar pattern, though with slightly more variability. Positive EBIT was reported in 2018 at 1,218 million and dropped sharply to 151 million in 2019, before declining to a substantial loss of -2,831 million in 2020. The company then achieved a considerable turnaround in 2021 with 3,286 million in EBIT and further growth to 8,145 million in 2022.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA, reflecting the company's core operational profitability excluding non-cash expenses, shows the most pronounced trends. Starting with a robust 2,876 million in 2018, it declined to 1,648 million in 2019 and entered negative territory in 2020 with -1,531 million. The company recovered strongly thereafter with EBITDA increasing to 5,444 million in 2021 and reaching a peak of 10,368 million in 2022.
Overall, the financial data indicates a period of substantial operational and financial challenges centered around 2019 and 2020, with losses recorded across all profitability metrics. This was followed by a decisive recovery phase in 2021 and 2022, where all key earnings measures not only returned to positive figures but also improved beyond the levels seen at the start of the period. The rapid turnaround after 2020 suggests effective management actions or market conditions that significantly enhanced earnings capacity and profitability.
Enterprise Value to EBITDA Ratio, Current
Devon Energy 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. | |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | |
| EV/EBITDA, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2022-12-31).
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
Devon Energy Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
| EV/EBITDA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| EV/EBITDA, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a fluctuating trend over the five-year period. It initially decreased from 16,800 million USD in 2018 to 11,514 million USD in 2019, before rising sharply to 17,073 million USD in 2020. The growth continued significantly in 2021, with EV reaching 40,370 million USD, and further increased slightly to 42,800 million USD in 2022. This suggests an overall increase in market valuation and size of the company, particularly pronounced in the last two years.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA shows considerable volatility throughout the analyzed period. The company’s EBITDA decreased from 2,876 million USD in 2018 to 1,648 million USD in 2019, reflecting reduced earnings. A substantial negative EBITDA of -1,531 million USD was reported in 2020, indicating operational challenges or losses during that year. However, a strong recovery is evident in 2021, with EBITDA reaching 5,444 million USD, and this positive trend continued into 2022 with EBITDA nearly doubling to 10,368 million USD. This recovery marks a significant operational improvement after the downturn in 2020.
- EV/EBITDA Ratio
- The EV/EBITDA ratio exhibits varying values recalibrated by the fluctuating EBITDA. It increased from 5.84 in 2018 to 6.99 in 2019, suggesting a higher valuation relative to EBITDA. The absence of a ratio in 2020 is due to negative EBITDA, which renders the ratio undefined. In 2021, the ratio stood at 7.42, indicating perhaps an elevated enterprise value in relation to earnings. By 2022, this ratio decreased notably to 4.13, suggesting that EBITDA growth outpaced the increase in enterprise value, potentially highlighting improved earnings efficiency or enhanced profitability valuation at that time.