Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Expand Energy Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
- Net Income (Loss)
- The net income shows a clear downward trend over the four-year period. Starting from a high of 6,328 million US dollars in 2021, it declined to 4,936 million US dollars in 2022 and further dropped significantly to 2,419 million US dollars in 2023. In 2024, the net income turned negative, resulting in a loss of 714 million US dollars, indicating a marked deterioration in profitability.
- Earnings Before Tax (EBT)
- The EBT follows a similar declining pattern as net income. It fell from 6,222 million US dollars in 2021 to 3,651 million US dollars in 2022. A slight recovery is noted in 2023 with EBT at 3,117 million US dollars, but in 2024, the earnings also turn negative at -841 million US dollars, signaling increasing challenges before tax expenses.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures mirror the downward trend observed in EBT. From 6,306 million US dollars in 2021, EBIT decreased sharply to 3,811 million US dollars in 2022 and 3,221 million US dollars in 2023. The trend reverses dramatically in 2024 with the company reporting a negative EBIT of 718 million US dollars, reflecting decreased operational profitability.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA, indicative of the company’s operational cash flow potential, also declined considerably over the observed period. It decreased from 7,297 million US dollars in 2021 to 5,564 million US dollars in 2022, followed by a further decrease to 4,748 million US dollars in 2023. By 2024, EBITDA dropped sharply to just 1,011 million US dollars, illustrating a substantial contraction in core earnings capability before non-cash expenses.
Enterprise Value to EBITDA Ratio, Current
Expand Energy Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 30,861) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,011) |
| Valuation Ratio | |
| EV/EBITDA | 30.52 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 6.31 |
| ConocoPhillips | 5.78 |
| Exxon Mobil Corp. | 7.06 |
| Occidental Petroleum Corp. | 6.15 |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | 6.57 |
| EV/EBITDA, Industry | |
| Energy | 6.58 |
Based on: 10-K (reporting date: 2024-12-31).
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
Expand Energy Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Enterprise value (EV)1 | 29,120) | 11,842) | 13,638) | 9,771) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,011) | 4,748) | 5,564) | 7,297) | |
| Valuation Ratio | |||||
| EV/EBITDA3 | 28.80 | 2.49 | 2.45 | 1.34 | |
| Benchmarks | |||||
| EV/EBITDA, Competitors4 | |||||
| Chevron Corp. | 6.50 | 6.34 | 4.74 | 7.18 | |
| ConocoPhillips | 5.91 | 5.64 | 3.82 | 6.34 | |
| Exxon Mobil Corp. | 6.88 | 5.81 | 4.54 | 7.07 | |
| Occidental Petroleum Corp. | 6.22 | 5.41 | 3.70 | 5.30 | |
| EV/EBITDA, Sector | |||||
| Oil, Gas & Consumable Fuels | 6.56 | 5.90 | 4.40 | 6.79 | |
| EV/EBITDA, Industry | |||||
| Energy | 6.62 | 6.11 | 4.65 | 7.04 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 29,120 ÷ 1,011 = 28.80
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited varied behavior over the observed periods. From December 31, 2021, to December 31, 2022, EV increased significantly from 9,771 million US dollars to 13,638 million US dollars. However, in the following year, December 31, 2023, the EV showed a decline to 11,842 million US dollars, indicating a downward adjustment. By December 31, 2024, there was a sharp escalation in EV, reaching 29,120 million US dollars, more than doubling its previous year's value.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA displayed a consistent downward trend during the same period. Starting at 7,297 million US dollars as of December 31, 2021, it decreased to 5,564 million US dollars in 2022 and further dropped to 4,748 million US dollars by the end of 2023. The most notable decline occurred in 2024, where the EBITDA sharply decreased to 1,011 million US dollars.
- EV/EBITDA Ratio
- The EV/EBITDA ratio indicates a significant change in valuation relative to earnings over the years. Initially, the ratio was low at 1.34 times as of December 31, 2021, which increased noticeably to 2.45 times in 2022 and marginally more to 2.49 times in 2023. However, by the end of 2024, this ratio surged dramatically to 28.8 times, reflecting a substantial increase in enterprise value relative to EBITDA, driven both by the considerable rise in EV and the significant reduction in EBITDA.