Enterprise Value to EBITDA (EV/EBITDA)
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- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2012
- Current Ratio since 2012
- Price to Earnings (P/E) since 2012
- Price to Sales (P/S) since 2012
- Aggregate Accruals
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Phillips 66, EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
The financial data presents significant fluctuations in profitability and earnings measures over the five-year period from 2015 to 2019.
- Net Income
- The net income attributable to the company showed a notable decrease from 4,227 million USD in 2015 to 1,555 million USD in 2016. However, it rebounded sharply in 2017 to 5,106 million USD and continued to increase moderately to 5,595 million USD in 2018 before declining again to 3,076 million USD in 2019. Overall, the pattern indicates volatility with a peak around 2017-2018, followed by a substantial drop in 2019.
- Earnings Before Tax (EBT)
- The EBT followed a somewhat similar trajectory with an initial sharp decline from 6,044 million USD in 2015 to 2,191 million USD in 2016. It increased significantly to 3,555 million USD in 2017 and more than doubled to 7,445 million USD in 2018, before decreasing to 4,178 million USD in 2019. This reflects strong earnings recovery after 2016 and a subsequent decrease in the last year analyzed.
- Earnings Before Interest and Tax (EBIT)
- EBIT also exhibited considerable variation, dropping from 6,354 million USD in 2015 to 2,529 million USD in 2016, then rising to 3,993 million USD in 2017 and surging to 7,949 million USD in 2018. This was followed by a decline to 4,636 million USD in 2019. The trend closely mirrors that of EBT, indicating consistent operational earnings performance changes over the period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures reinforce the pattern observed in other earnings metrics, decreasing sharply from 7,432 million USD in 2015 to 3,697 million USD in 2016. Then, there was a steady increase to 5,311 million USD in 2017 and a peak at 9,305 million USD in 2018, followed by a decline to 5,977 million USD in 2019. This indicator reveals significant changes in operational cash flow capacity, peaking in 2018.
Overall, the company experienced a pronounced dip in earnings across all measures in 2016, followed by strong improvements and peaks in 2017 and 2018. The year 2019 shows a marked decline from the preceding peak levels, suggesting potential challenges or market conditions impacting profitability and operational performance in that year. The cyclicality and variability in earnings highlight volatility in the financial results during this period.
Enterprise Value to EBITDA Ratio, Current
Phillips 66, 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. | |
Based on: 10-K (reporting date: 2019-12-31).
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
Phillips 66, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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. | ||||||
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited a slight increase from 48,895 million USD in 2015 to 49,493 million USD in 2016, followed by a more significant rise to 55,363 million USD in 2017. Thereafter, it showed a modest decline to 54,931 million USD in 2018 and further decreased to 51,629 million USD in 2019. Overall, the EV remained relatively stable with moderate fluctuations over the five-year period.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA started at 7,432 million USD in 2015 but experienced a sharp decline to 3,697 million USD in 2016, which is a notable contraction of more than 50%. The figure then recovered to 5,311 million USD in 2017 and rose significantly to reach a peak of 9,305 million USD in 2018. In 2019, EBITDA fell again to 5,977 million USD. This indicates substantial volatility in profitability, with a remarkable rebound in 2018 followed by a decline the next year.
- EV/EBITDA Ratio
- The EV/EBITDA ratio nearly doubled from 6.58 in 2015 to 13.39 in 2016, reflecting the drop in EBITDA relative to enterprise value. Subsequently, the ratio decreased to 10.42 in 2017 and further dropped to the lowest point of 5.9 in 2018, consistent with the EBITDA peak in that year. In 2019, the ratio increased again to 8.64 due to the EBITDA reduction, indicating a less favorable valuation relative to earnings.