Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
BP PLC, EBITDA calculation
US$ in millions
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| 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. | BP PLC EBITDA increased from 2012 to 2013 but then decreased significantly from 2013 to 2014. |
Enterprise Value to EBITDA Ratio, Current
BP PLC, current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 163,138) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 21,261) |
| Valuation Ratio | |
| EV/EBITDA | 7.67 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 6.46 |
| ConocoPhillips | 6.42 |
| Exxon Mobil Corp. | 6.57 |
| Marathon Petroleum Corp. | 5.04 |
| Occidental Petroleum Corp. | 5.95 |
| Pioneer Natural Resources Co. | 7.29 |
| Valero Energy Corp. | 4.14 |
Based on: 20-F (reporting date: 2014-12-31).
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
BP PLC, historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 163,138) | 192,413) | 159,972) | 177,084) | 175,709) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 21,261) | 44,799) | 32,415) | 51,215) | 7,509) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 7.67 | 4.30 | 4.94 | 3.46 | 23.40 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Marathon Petroleum Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
| Pioneer Natural Resources Co. | — | — | — | — | — | |
| Valero Energy Corp. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
3 2014 Calculation
EV/EBITDA = EV ÷ EBITDA
= 163,138 ÷ 21,261 = 7.67
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. | BP PLC EV/EBITDA ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level. |