Marathon Petroleum Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to MPC	9,681)	14,516)	9,738)	(9,826)	2,637)
Net (income) loss attributable to noncontrolling interests	1,491)	1,534)	1,263)	(151)	618)
Net noncash charges	2,785)	1,462)	(3,548)	10,515)	6,060)
Changes in operating assets and liabilities, net of effects of businesses acquired	160)	(1,193)	931)	269)	126)
Net cash provided by operating activities	14,117)	16,319)	8,384)	807)	9,441)
Interest paid, net of amounts capitalized, net of tax¹	960)	827)	1,120)	1,013)	881)
Interest capitalized, net of tax²	48)	81)	66)	106)	119)
Additions to property, plant and equipment	(1,890)	(2,420)	(1,464)	(2,787)	(5,374)
Free cash flow to the firm (FCFF)	13,235)	14,807)	8,107)	(862)	5,066)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Marathon Petroleum Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Marathon Petroleum Corp. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Marathon Petroleum Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	20.00%	22.00%	9.00%	18.00%	25.00%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax	1,200)	1,060)	1,231)	1,235)	1,174)
Less: Interest paid, net of amounts capitalized, tax²	240)	233)	111)	222)	294)
Interest paid, net of amounts capitalized, net of tax	960)	827)	1,120)	1,013)	881)
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax	60)	104)	73)	129)	158)
Less: Interest capitalized, tax³	12)	23)	7)	23)	40)
Interest capitalized, net of tax	48)	81)	66)	106)	119)

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).

¹ See details »

² 2023 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 1,200 × 20.00% = 240

³ 2023 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 60 × 20.00% = 12

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Marathon Petroleum Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	73,055)
Free cash flow to the firm (FCFF)	13,235)
Valuation Ratio
EV/FCFF	5.52
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	14.93
ConocoPhillips	15.40
Exxon Mobil Corp.	15.88
Occidental Petroleum Corp.	10.60
Valero Energy Corp.	6.06
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	12.84
EV/FCFF, Industry
Energy	12.99

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Marathon Petroleum Corp., historical EV/FCFF 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	83,564)	77,259)	63,196)	73,795)	66,555)
Free cash flow to the firm (FCFF)²	13,235)	14,807)	8,107)	(862)	5,066)
Valuation Ratio
EV/FCFF³	6.31	5.22	7.80	—	13.14
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	14.85	8.27	13.33	106.63	16.67
ConocoPhillips	15.38	7.43	10.72	92.48	13.21
Exxon Mobil Corp.	12.47	7.84	10.06	—	44.38
Occidental Petroleum Corp.	11.15	5.95	8.39	25.58	45.65
Valero Energy Corp.	6.36	5.39	10.62	—	9.96
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	11.74	7.32	10.61	399.27	21.17
EV/FCFF, Industry
Energy	12.06	7.80	10.93	210.37	21.44

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).

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² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 83,564 ÷ 13,235 = 6.31

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Marathon Petroleum Corp. EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Marathon Petroleum Corp. (NYSE:MPC)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical