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Exxon Mobil Corp. (XOM)


Enterprise Value to EBITDA (EV/EBITDA)

Difficulty: Intermediate


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

Exxon Mobil Corp., EBITDA calculation

USD $ 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 attributable to ExxonMobil 20,840  19,710  7,840  16,150  32,520 
Add: Net income attributable to noncontrolling interest 581  138  535  401  1,095 
Add: Income tax expense 9,532  (1,174) (406) 5,415  18,015 
Earnings before tax (EBT) 30,953  18,674  7,969  21,966  51,630 
Add: Interest expense 766  601  453  311  286 
Earnings before interest and tax (EBIT) 31,719  19,275  8,422  22,277  51,916 
Add: Depreciation and depletion 18,745  19,893  22,308  18,048  17,297 
Earnings before interest, tax, depreciation and amortization (EBITDA) 50,464  39,168  30,730  40,325  69,213 

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

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. Exxon Mobil Corp.’s EBITDA increased from 2016 to 2017 and from 2017 to 2018.

Enterprise Value to EBITDA Ratio, Current

Exxon Mobil Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (USD $ in millions)
Enterprise value (EV) 358,778 
Earnings before interest, tax, depreciation and amortization (EBITDA) 50,464 
Ratio
EV/EBITDA 7.11
Benchmarks
EV/EBITDA, Competitors
Chevron Corp. 6.46
ConocoPhillips 4.54
EOG Resources Inc. 6.95
Occidental Petroleum Corp. 4.65
Phillips 66 6.11
EV/EBITDA, Sector
Oil & Gas Producers 6.34
EV/EBITDA, Industry
Oil & Gas 6.76

Based on: 10-K (filing date: 2019-02-27).

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if 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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Enterprise value (EV)1 378,028  366,916  381,187  379,514  406,972 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 50,464  39,168  30,730  40,325  69,213 
Ratio
EV/EBITDA3 7.49 9.37 12.40 9.41 5.88
Benchmarks
EV/EBITDA, Competitors
Chevron Corp. 6.19 8.49 14.31 7.31 4.58
ConocoPhillips 5.18 13.93 17.45 22.74 5.47
EOG Resources Inc. 7.45 15.52 27.16 6.10
Occidental Petroleum Corp. 5.74 10.65 19.84 10.27
Phillips 66 5.90 10.42 13.39 6.58 6.56
EV/EBITDA, Sector
Oil & Gas Producers 6.57 9.80 14.28 11.45 5.64
EV/EBITDA, Industry
Oil & Gas 6.98 10.88 15.70 11.75 6.41

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

2018 Calculations

3 EV/EBITDA = EV ÷ EBITDA
= 378,028 ÷ 50,464 = 7.49

Ratio Description The company
EV/EBITDA EV/EBITDA is a valuation indicator for the overall company rather than common stock. Exxon Mobil Corp.’s EV/EBITDA ratio declined from 2016 to 2017 and from 2017 to 2018.