Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
ONEOK Inc., EBITDA calculation
US$ in thousands
Based on: 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), 10-K (reporting date: 2018-12-31).
- Net Income Attributable to ONEOK
- The net income showed a generally positive trend over the five-year period, increasing from approximately $1.15 billion in 2018 to around $1.72 billion in 2022. There was a notable decline in 2020, with net income nearly halving compared to the previous year, but a strong recovery followed in 2021 and 2022, exceeding prior levels.
- Earnings Before Tax (EBT)
- EBT mirrored the pattern observed in net income, starting at about $1.52 billion in 2018 and rising to nearly $2.25 billion in 2022. A sharp drop occurred in 2020, with the figure falling to roughly $802 million, less than half of the 2019 value. Recovery in 2021 and continued growth in 2022 indicate a robust rebound in pre-tax profitability.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated a similar trajectory, albeit with somewhat less volatility. The value decreased substantially in 2020 to around $1.52 billion from approximately $2.14 billion in 2019. However, the subsequent two years saw significant increases, reaching about $2.93 billion in 2022, the highest in the observed period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA followed the overall trend consistent with other earnings measures. It declined in 2020 to approximately $2.09 billion from $2.62 billion in 2019. The figure then increased sharply in 2021 to over $3.33 billion and grew further to approximately $3.55 billion in 2022. The data suggest strengthening operational cash flow generation capacity post-2020.
- Summary of Trends
- The financial data reveal a significant dip in earnings during 2020 across all measures, likely reflecting adverse conditions in that period. This was followed by a marked recovery starting in 2021, with earnings surpassing pre-2020 levels by 2022. The upward trajectory in net income, EBT, EBIT, and EBITDA demonstrates improved profitability and operational performance toward the end of the period.
Enterprise Value to EBITDA Ratio, Current
ONEOK Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 42,141,201) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 3,551,723) |
| Valuation Ratio | |
| EV/EBITDA | 11.87 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 6.10 |
| ConocoPhillips | 5.71 |
| Exxon Mobil Corp. | 6.88 |
| Occidental Petroleum Corp. | 6.01 |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | 4.22 |
| EV/EBITDA, Industry | |
| Energy | 4.34 |
Based on: 10-K (reporting date: 2022-12-31).
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
ONEOK Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 42,693,473) | 41,998,057) | 34,036,023) | 43,137,106) | 35,859,514) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 3,551,723) | 3,338,829) | 2,093,864) | 2,619,299) | 2,416,112) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 12.02 | 12.58 | 16.26 | 16.47 | 14.84 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | 4.74 | 7.18 | 18.57 | — | — | |
| ConocoPhillips | 3.82 | 6.34 | 23.12 | — | — | |
| Exxon Mobil Corp. | 4.54 | 7.07 | 16.97 | — | — | |
| Occidental Petroleum Corp. | 3.70 | 5.30 | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 4.40 | 6.79 | 24.59 | — | — | |
| EV/EBITDA, Industry | ||||||
| Energy | 4.65 | 7.04 | 36.95 | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 42,693,473 ÷ 3,551,723 = 12.02
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated variability over the analyzed five-year period. It increased from approximately $35.86 billion in 2018 to reach a peak of around $43.14 billion in 2019. Subsequently, it declined substantially in 2020 to about $34.04 billion, before rising again in 2021 and 2022 to approximately $41.998 billion and $42.693 billion, respectively. This pattern indicates fluctuations likely influenced by market conditions or company-specific factors during these years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed a general trend of growth over the period under review, with some notable deviations. Starting at approximately $2.416 billion in 2018, it increased modestly in 2019. However, there was a marked decrease in 2020, falling to around $2.094 billion, which may reflect operational or economic challenges faced during that year. The subsequent years, 2021 and 2022, saw robust recoveries with EBITDA rising significantly to about $3.339 billion and $3.552 billion, respectively, indicating improved operating performance.
- EV/EBITDA Ratio
- The EV/EBITDA ratio experienced fluctuations aligned with the movements in EV and EBITDA values. It increased from 14.84 in 2018 to a higher range near 16.47 in 2019 and remained relatively stable in 2020 at 16.26, reflecting that EV did not decline as much as EBITDA that year. In 2021 and 2022, the ratio decreased to 12.58 and 12.02, respectively, illustrating a relative increase in EBITDA compared to EV. This decline suggests enhanced valuation multiples in favor of earnings capacity, possibly indicating improved operational efficiency or market reassessment of the company's earnings potential.