Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Exxon Mobil 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), 10-K (reporting date: 2020-12-31).
The financial performance exhibits a significant recovery and growth trend over the observed period. The net income attributable shows a negative value in 2020, reflecting a loss of 22,440 million US dollars, followed by a strong positive turnaround with substantial increases in subsequent years, peaking at 55,740 million in 2022 before moderate declines in 2023 and 2024 to 36,010 million and 33,680 million respectively.
Earnings before tax (EBT) follow a similar pattern with a negative result in 2020 at -28,883 million US dollars, moving into strong profitability with a peak in 2022 of 77,753 million. This is followed by decreases in 2023 and 2024, though the values remain significantly positive at 52,783 million and 48,873 million respectively.
The EBIT metric indicates operating earnings before interest and tax. It also shows a loss in 2020 (-27,725 million US dollars) but conversely rebounds impressively in 2021 and reaches a peak of 78,551 million in 2022. Subsequent years show a reduction but maintain strong positive levels at 53,632 million in 2023 and 49,869 million in 2024.
EBITDA follows a different initial trend with a positive value of 18,284 million in 2020, increasing substantially to 52,788 million in 2021 and peaking at 102,591 million in 2022. However, there is a notable decline in 2023 to 74,273 million and a slight further decrease in 2024 to 73,311 million, although EBITDA remains considerably higher than the starting point in 2020.
- Summary of Trends
- Overall, the data illustrates a major recovery from a challenging year in 2020, where losses were recorded in net income, EBT, and EBIT. The years 2021 and particularly 2022 demonstrate peak profitability across all metrics, with 2022 being the highest point for net income, EBT, EBIT, and EBITDA.
- Following 2022, there is a discernible decline in profitability measures in 2023 and 2024. Despite this decline, the levels remain significantly profitable compared to the initial year, signaling sustained operational strength.
- The consistency of EBITDA remaining positive even during the lowest year (2020) reflects underlying cash earnings strength, although profitability before tax and interest was negative at that time.
- The gap between EBITDA and EBIT suggests substantial depreciation and amortization expenses, which remain stable in the context of high EBITDA values.
Enterprise Value to EBITDA Ratio, Current
Exxon Mobil Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 496,970) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 73,311) |
| Valuation Ratio | |
| EV/EBITDA | 6.78 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 5.94 |
| ConocoPhillips | 5.49 |
| Occidental Petroleum Corp. | 5.91 |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | 6.26 |
| EV/EBITDA, Industry | |
| Energy | 6.27 |
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
Exxon Mobil Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 504,190) | 431,696) | 465,686) | 373,021) | 310,294) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 73,311) | 74,273) | 102,591) | 52,788) | 18,284) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 6.88 | 5.81 | 4.54 | 7.07 | 16.97 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | 6.50 | 6.34 | 4.74 | 7.18 | 18.57 | |
| ConocoPhillips | 5.91 | 5.64 | 3.82 | 6.34 | 23.12 | |
| 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 | 24.59 | |
| EV/EBITDA, Industry | ||||||
| Energy | 6.62 | 6.11 | 4.65 | 7.04 | 36.95 | |
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), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 504,190 ÷ 73,311 = 6.88
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a consistent upward trend over the observed period. It increased from US$310,294 million at the end of 2020 to US$504,190 million by the end of 2024. The growth was particularly notable between 2021 and 2022, with an increase of nearly US$92,665 million, followed by some fluctuation in subsequent years but maintaining an overall rising trajectory.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA values exhibit a significant upward trend from 2020 to 2022, rising from US$18,284 million to a peak of US$102,591 million in 2022. This peak was followed by a decline in both 2023 and 2024, with values dropping to US$74,273 million and US$73,311 million respectively, indicating some volatility in operational profitability after 2022.
- EV/EBITDA Ratio
- The EV/EBITDA ratio indicates a sharp decrease from 16.97 in 2020 to 4.54 in 2022, reflecting a substantial improvement in valuation relative to earnings initially. However, from 2022 onward, the ratio increased again to 6.88 by the end of 2024. This suggests that the market valuation grew faster than EBITDA in recent years, or the earnings declined relative to the enterprise value, highlighting a shift in market perception or operational performance.