Enterprise Value to EBITDA (EV/EBITDA)
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- Income Statement
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Halliburton Co., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
- Net Income (Loss) Attributable to Company
- The net income shows a significant decline from a positive 3500 million US dollars in 2014 to negative values in 2015 and 2016, registering -671 million and -5763 million respectively. In 2017, the loss narrows considerably to -463 million, followed by a recovery to a positive 1656 million in 2018. This pattern indicates a period of financial distress in 2015 and 2016 with gradual improvement thereafter.
- Earnings Before Tax (EBT)
- EBT mirrors the net income trend, starting at 4712 million US dollars in 2014 before turning negative in the subsequent two years, -936 million in 2015 and -7625 million in 2016. The value rebounds to positive territory with 682 million in 2017 and further grows to 1814 million in 2018. This trajectory suggests recovery in operational profitability and tax environment impact after a challenging period.
- Earnings Before Interest and Tax (EBIT)
- EBIT shows a decline from 5108 million in 2014 to a negative figure in 2015 (-473 million), deepens further into negative territory in 2016 (-6927 million), and then improves to 1387 million in 2017 and 2412 million in 2018. The sharp downturn followed by a strong recovery points to volatility in core operating earnings during these years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA starts at a high of 7234 million in 2014, drops substantially to 1362 million in 2015, and swings to a negative 5424 million in 2016. It recovers strongly in the subsequent years to 2943 million in 2017 and 4018 million in 2018. This fluctuation reflects significant operational challenges in 2015 and 2016, with a notable turnaround in the following years.
Enterprise Value to EBITDA Ratio, Current
Halliburton Co., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Schlumberger Ltd. | |
Based on: 10-K (reporting date: 2018-12-31).
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
Halliburton Co., historical EV/EBITDA calculation, comparison to benchmarks
| 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 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Schlumberger Ltd. | ||||||
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
3 2018 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrated considerable volatility during the observed period. Starting at a high of 42,232 million USD at the end of 2014, it sharply decreased in 2015 to 32,211 million USD. This was followed by a significant rebound in 2016, reaching 55,991 million USD. Subsequently, EV declined again in 2017 and 2018, settling at 49,490 million USD and then further decreasing to 35,869 million USD. This pattern indicates fluctuating market perceptions or operational factors affecting company valuation.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed substantial instability across the time frame. It was strong and positive in 2014 at 7,234 million USD but plummeted to 1,362 million USD in 2015. Notably, EBITDA turned negative in 2016, with a significant loss of 5,424 million USD, illustrating a period of operational challenges or extraordinary expenses. A recovery trend is observed in the subsequent years, with EBITDA improving to 2,943 million USD in 2017 and increasing further to 4,018 million USD in 2018, signaling operational stabilization and improving profitability.
- EV/EBITDA Ratio
- The EV/EBITDA ratio reflects marked fluctuations consistent with the volatility in enterprise value and EBITDA. Beginning at 5.84 in 2014, it surged disproportionately to 23.65 in 2015, indicating a steep drop in EBITDA relative to enterprise value. The ratio is absent for 2016, likely due to the EBITDA being negative, which makes ratio calculation uninformative. It decreased to 16.82 in 2017, showing some normalization, and further declined to 8.93 in 2018, suggesting improved earnings relative to the company’s valuation. The downward trend in the last two years points to better operational efficiency or more attractive pricing levels.