Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
National Oilwell Varco Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| 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. | National Oilwell Varco Inc. EBITDA increased from 2013 to 2014 but then decreased significantly from 2014 to 2015. |
Enterprise Value to EBITDA Ratio, Current
National Oilwell Varco Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 14,260) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 261) |
| Valuation Ratio | |
| EV/EBITDA | 54.64 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Schlumberger Ltd. | 7.73 |
Based on: 10-K (reporting date: 2015-12-31).
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
National Oilwell Varco Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 12,938) | 22,310) | 32,562) | 29,001) | 33,665) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 261) | 4,377) | 4,212) | 4,182) | 3,517) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 49.57 | 5.10 | 7.73 | 6.93 | 9.57 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Schlumberger Ltd. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
3 2015 Calculation
EV/EBITDA = EV ÷ EBITDA
= 12,938 ÷ 261 = 49.57
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. | National Oilwell Varco Inc. EV/EBITDA ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level. |