Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
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. | Royal Dutch Shell PLC EBITDA decreased from 2012 to 2013 and from 2013 to 2014. |
Enterprise Value to EBITDA Ratio, Current
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 209,386) |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 53,578) |
Valuation Ratio | |
EV/EBITDA | 3.91 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
Chevron Corp. | 6.76 |
ConocoPhillips | 6.53 |
Exxon Mobil Corp. | 6.72 |
Marathon Petroleum Corp. | 5.13 |
Occidental Petroleum Corp. | 6.07 |
Valero Energy Corp. | 4.18 |
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
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 | 209,386) | 259,612) | 230,560) | 249,613) | 242,298) | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 53,578) | 55,751) | 65,798) | 69,423) | 51,188) | |
Valuation Ratio | ||||||
EV/EBITDA3 | 3.91 | 4.66 | 3.50 | 3.60 | 4.73 | |
Benchmarks | ||||||
EV/EBITDA, Competitors4 | ||||||
Chevron Corp. | — | — | — | — | — | |
ConocoPhillips | — | — | — | — | — | |
Exxon Mobil Corp. | — | — | — | — | — | |
Marathon Petroleum Corp. | — | — | — | — | — | |
Occidental Petroleum Corp. | — | — | — | — | — | |
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
= 209,386 ÷ 53,578 = 3.91
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. | Royal Dutch Shell PLC EV/EBITDA ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level. |