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ConocoPhillips (COP)


Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level


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

ConocoPhillips, EBITDA calculation

US$ in millions

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12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income (loss) attributable to ConocoPhillips 6,257  (855) (3,615) (4,428) 6,869 
Add: Net income attributable to noncontrolling interest 48  62  56  57  69 
Less: Income from discontinued operations —  —  —  —  1,131 
Add: Income tax expense 3,668  (1,822) (1,971) (2,868) 3,583 
Earnings before tax (EBT) 9,973  (2,615) (5,530) (7,239) 9,390 
Add: Interest and debt expense 735  1,098  1,245  920  648 
Earnings before interest and tax (EBIT) 10,708  (1,517) (4,285) (6,319) 10,038 
Add: Depreciation, depletion and amortization 5,956  6,845  9,062  9,113  8,329 
Earnings before interest, tax, depreciation and amortization (EBITDA) 16,664  5,328  4,777  2,794  18,367 

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

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. ConocoPhillips’s EBITDA increased from 2016 to 2017 and from 2017 to 2018.

Enterprise Value to EBITDA Ratio, Current

ConocoPhillips, current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 76,607 
Earnings before interest, tax, depreciation and amortization (EBITDA) 16,664 
Valuation Ratio
EV/EBITDA 4.60
Benchmarks
EV/EBITDA, Competitors1
Chevron Corp. 5.86
EOG Resources Inc. 6.67
Exxon Mobil Corp. 6.46
Phillips 66 6.01
EV/EBITDA, Sector
Oil & Gas Producers 5.99
EV/EBITDA, Industry
Oil & Gas 6.47

Based on: 10-K (filing date: 2019-02-19).

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

ConocoPhillips, historical EV/EBITDA calculation, comparison to benchmarks

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 86,298  74,214  83,348  63,528  100,484 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 16,664  5,328  4,777  2,794  18,367 
Valuation Ratio
EV/EBITDA3 5.18 13.93 17.45 22.74 5.47
Benchmarks
EV/EBITDA, Competitors4
Chevron Corp. 6.19 8.49 14.31 7.31 4.58
EOG Resources Inc. 7.45 15.52 27.16 6.10
Exxon Mobil Corp. 7.49 9.37 12.40 9.41 5.88
Phillips 66 5.90 10.42 13.39 6.58 6.56
EV/EBITDA, Sector
Oil & Gas Producers 6.64 9.74 14.01 9.92 5.47
EV/EBITDA, Industry
Oil & Gas 7.07 10.89 15.52 10.42 6.28

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-23), 10-K (filing date: 2015-02-24).

1 See details »

2 See details »

3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= 86,298 ÷ 16,664 = 5.18

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. ConocoPhillips’s EV/EBITDA ratio decreased from 2016 to 2017 and from 2017 to 2018.