Stock Analysis on Net

Schlumberger Ltd. (NYSE:SLB)

Enterprise Value to EBITDA (EV/EBITDA)

Microsoft Excel

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Schlumberger Ltd., EBITDA calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) attributable to SLB 4,203 3,441 1,881 (10,518) (10,137)
Add: Net income attributable to noncontrolling interest 72 51 47 32 30
Add: Income tax expense 1,007 779 446 (812) (311)
Earnings before tax (EBT) 5,282 4,271 2,374 (11,298) (10,418)
Add: Interest expense 503 490 539 563 609
Earnings before interest and tax (EBIT) 5,785 4,761 2,913 (10,735) (9,809)
Add: Depreciation and amortization, includes depreciation of fixed assets and amortization of intangible assets, exploration data costs and APS investments 2,312 2,147 2,120 2,566 3,589
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,097 6,908 5,033 (8,169) (6,220)

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).

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. Schlumberger Ltd. EBITDA increased from 2021 to 2022 and from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

Schlumberger Ltd., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 70,010
Earnings before interest, tax, depreciation and amortization (EBITDA) 8,097
Valuation Ratio
EV/EBITDA 8.65
Benchmarks
EV/EBITDA, Industry
Energy 6.18

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

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

Schlumberger Ltd., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
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 82,899 89,522 67,193 44,665 64,327
Earnings before interest, tax, depreciation and amortization (EBITDA)2 8,097 6,908 5,033 (8,169) (6,220)
Valuation Ratio
EV/EBITDA3 10.24 12.96 13.35
Benchmarks
EV/EBITDA, Industry
Energy 5.78 4.41 7.21 71.70 7.51

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 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 82,899 ÷ 8,097 = 10.24

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. Schlumberger Ltd. EV/EBITDA ratio decreased from 2021 to 2022 and from 2022 to 2023.