Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Anadarko Petroleum Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
- Net income (loss) attributable to common stockholders
- The net income demonstrated significant volatility over the five-year period. It peaked at 2,391 million USD in 2012 before sharply declining to 801 million USD in 2013. The trend turned negative starting from 2014, with a net loss of 1,750 million USD, worsening substantially in 2015 to a loss of 6,692 million USD. In 2016, the net loss persisted but improved slightly to 3,071 million USD. This indicates increasing financial distress and challenges in maintaining profitability.
- Earnings before tax (EBT)
- EBT followed a downward trajectory similar to net income. It started at 3,565 million USD in 2012 and decreased consistently, falling to 2,106 million USD in 2013 and near zero (54 million USD) in 2014. Earnings quickly deteriorated in 2015 with a negative figure of 9,689 million USD, slightly recovering but remaining negative at 3,829 million USD in 2016. This pattern reflects a declining operational efficiency and increased burdens before tax considerations.
- Earnings before interest and tax (EBIT)
- EBIT values also mirrored the overall decline seen in profitability metrics. Beginning at 4,307 million USD in 2012, EBIT diminished sharply over subsequent years, dropping to 2,792 million USD in 2013 and further to 826 million USD in 2014. A considerable loss emerged in 2015 amounting to 8,864 million USD with a reduced but still negative figure of 2,939 million USD in 2016. This indicates challenges in core operational profitability independent of financing and tax impacts.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- The EBITDA trend also revealed a substantial decline, though reflecting larger positive values relative to EBIT due to excluded non-cash charges. Starting at 8,271 million USD in 2012, EBITDA decreased to 6,719 million USD in 2013 and 5,376 million USD in 2014. In 2015, EBITDA turned negative to -4,261 million USD, indicating operational cash flow difficulties, before recovering somewhat to a positive 1,362 million USD in 2016. This suggests some operational cash flow stabilization after significant challenges.
Enterprise Value to EBITDA Ratio, Current
Anadarko Petroleum Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 42,437) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,362) |
| Valuation Ratio | |
| EV/EBITDA | 31.16 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 6.08 |
| ConocoPhillips | 5.61 |
| Exxon Mobil Corp. | 6.88 |
| Occidental Petroleum Corp. | 5.96 |
Based on: 10-K (reporting date: 2016-12-31).
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
Anadarko Petroleum Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 52,747) | 38,042) | 53,609) | 54,057) | 54,164) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,362) | (4,261) | 5,376) | 6,719) | 8,271) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 38.73 | — | 9.97 | 8.05 | 6.55 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
3 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= 52,747 ÷ 1,362 = 38.73
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibits relative stability between 2012 and 2014, with values fluctuating slightly from 54,164 million USD in 2012 to 53,609 million USD in 2014. However, there is a marked decline in 2015, dropping significantly to 38,042 million USD. This reduction represents a substantial decrease compared to prior years. Subsequently, in 2016, the EV rebounds to 52,747 million USD, approaching levels observed at the beginning of the examined period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA shows a downward trend from 8,271 million USD in 2012 to 5,376 million USD in 2014, reflecting diminishing operational earnings capacity. In 2015, EBITDA turns negative, reaching -4,261 million USD, indicating operational losses or impairments during that fiscal year. A partial recovery is noted in 2016, as EBITDA climbs back to a positive figure of 1,362 million USD, albeit still significantly lower than earlier years.
- EV/EBITDA Ratio
- This valuation metric increased across the years with available data, starting at 6.55 in 2012 and rising to 9.97 in 2014, revealing a higher enterprise value relative to operational earnings. The ratio is missing for 2015, which is attributable to the negative EBITDA that year, making the ratio undefined or not meaningful. In 2016, the ratio spikes dramatically to 38.73, reflecting a disproportionately high enterprise value compared to the modestly positive EBITDA, suggesting potentially elevated market expectations or valuation adjustments despite subdued earnings.