Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
LyondellBasell Industries N.V., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
| 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. | LyondellBasell Industries N.V. EBITDA increased from 2016 to 2017 but then slightly decreased from 2017 to 2018. |
Enterprise Value to EBITDA Ratio, Current
LyondellBasell Industries N.V., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 33,643) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 6,912) |
| Valuation Ratio | |
| EV/EBITDA | 4.87 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Linde plc | 18.50 |
| Sherwin-Williams Co. | 24.49 |
Based on: 10-K (reporting date: 2018-12-31).
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
LyondellBasell Industries N.V., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 40,964) | 49,514) | 44,380) | 39,738) | 47,425) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 6,912) | 7,158) | 6,619) | 7,566) | 7,083) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 5.93 | 6.92 | 6.70 | 5.25 | 6.70 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Linde plc | — | — | — | — | — | |
| Sherwin-Williams Co. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 40,964 ÷ 6,912 = 5.93
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. | LyondellBasell Industries N.V. EV/EBITDA ratio increased from 2016 to 2017 but then decreased significantly from 2017 to 2018. |