Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Marathon Oil Corp., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2017-12-31).
| 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. | Marathon Oil Corp. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Enterprise Value to EBITDA Ratio, Current
Marathon Oil Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 18,012) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,327) |
| Valuation Ratio | |
| EV/EBITDA | 5.41 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 6.41 |
| ConocoPhillips | 5.57 |
| Exxon Mobil Corp. | 7.45 |
| Marathon Petroleum Corp. | 4.01 |
| Occidental Petroleum Corp. | 5.27 |
| Valero Energy Corp. | 3.52 |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | 9.00 |
| EV/EBITDA, Industry | |
| Energy | 9.19 |
Based on: 10-K (reporting date: 2021-12-31).
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
Marathon Oil Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 19,460) | 13,468) | 12,800) | 17,690) | 17,830) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,327) | 1,130) | 3,069) | 4,148) | 2,295) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 5.85 | 11.92 | 4.17 | 4.26 | 7.77 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | 7.18 | 18.57 | 6.39 | — | — | |
| ConocoPhillips | 6.34 | 23.12 | 4.13 | — | — | |
| Exxon Mobil Corp. | 7.07 | 16.97 | 6.91 | — | — | |
| Marathon Petroleum Corp. | 8.48 | — | 7.23 | — | — | |
| Occidental Petroleum Corp. | 5.30 | — | 10.32 | — | — | |
| Valero Energy Corp. | 10.17 | 47.76 | 6.00 | — | — | |
| EV/EBITDA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.99 | 40.24 | 6.54 | — | — | |
| EV/EBITDA, Industry | ||||||
| Energy | 7.21 | 71.70 | 7.51 | — | — | |
Based on: 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), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 19,460 ÷ 3,327 = 5.85
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. | Marathon Oil Corp. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level. |