Enterprise Value to EBITDA (EV/EBITDA)
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Marathon Petroleum Corp. pages available for free this week:
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to Book Value (P/BV) since 2011
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Marathon Petroleum Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 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).
- Net income (loss) attributable to MPC
- The net income exhibits significant volatility over the five-year period. In 2019, the company reported a positive net income of 2,637 million USD, followed by a sharp decline in 2020, resulting in a substantial loss of 9,826 million USD. This loss was reversed in subsequent years, with net income recovering to 9,738 million USD in 2021 and further increasing to 14,516 million USD in 2022. However, in 2023, net income decreased to 9,681 million USD, indicating some level of profit normalization or external challenges affecting profitability.
- Earnings before tax (EBT)
- EBT closely mirrors the net income trend, starting at 4,329 million USD in 2019 and plummeting to a negative 13,612 million USD in 2020. Recovery began in 2021, with EBT rising to 2,817 million USD, followed by a significant increase to 20,469 million USD in 2022. The figure declined in 2023 to 13,989 million USD but remained positive and considerably higher than the pre-pandemic base year of 2019.
- Earnings before interest and tax (EBIT)
- EBIT trends indicate a similar pattern of decline and recovery. The margin dropped from 5,567 million USD in 2019 to a negative 12,279 million USD in 2020. A rebound was observed in 2021 with an EBIT of 4,084 million USD, escalating sharply in 2022 to 21,664 million USD. In 2023, EBIT decreased yet remained robust at 15,254 million USD.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA values reflect operational earnings trends. After a solid performance in 2019 at 9,205 million USD, EBITDA declined sharply to -8,904 million USD in 2020. Following this, a gradual recovery was evident with 7,448 million USD in 2021. The year 2022 saw a substantial increase to 24,879 million USD. EBITDA decreased in 2023 to 18,561 million USD but stayed well above pre-pandemic levels.
Overall, the financial data shows a marked impact in 2020, likely due to extraordinary circumstances, followed by strong recovery and growth in 2021 and 2022 across profitability and earnings measures. Despite a decline in 2023 compared to the peak in 2022, key earnings figures remain significantly higher than those in 2019, indicating resilience and improved operational performance after the downturn.
Enterprise Value to EBITDA Ratio, Current
Marathon Petroleum 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: 2023-12-31).
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 Petroleum Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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: 2023-12-31), 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).
3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated an overall upward trend from 2019 through 2023. Starting at approximately 66.6 billion US dollars in 2019, it rose to around 73.8 billion in 2020, then declined to nearly 63.2 billion in 2021. A notable increase occurred in 2022, reaching approximately 77.3 billion, followed by a further rise to about 83.6 billion in 2023. This indicates growth in the company's market valuation over the observed period despite some fluctuations.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed significant volatility across the five years. In 2019, the value was positive at 9.2 billion US dollars, but sharply declined to a negative 8.9 billion in 2020, suggesting operational challenges or extraordinary expenses. Recovery began in 2021 with EBITDA at 7.4 billion, followed by a substantial increase to 24.9 billion in 2022. In 2023, EBITDA decreased to 18.6 billion yet remained significantly higher than pre-2020 levels, indicating improved operational performance compared to earlier years.
- EV/EBITDA Ratio
- The EV/EBITDA ratio fluctuated in accordance with changes in both enterprise value and EBITDA. It started at 7.23 in 2019, was unreported in 2020 likely due to the negative EBITDA, rose to 8.48 in 2021, decreased markedly to 3.11 in 2022, and increased again to 4.5 in 2023. The sharp decline in 2022 suggests that EBITDA growth outpaced enterprise value increases, highlighting enhanced earnings relative to the company's valuation during that period. The subsequent rise in the ratio in 2023 indicates some moderation in this trend.