Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Kinder Morgan Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2019-12-31), 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).
| 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. | Kinder Morgan Inc. EBITDA increased from 2017 to 2018 and from 2018 to 2019. |
Enterprise Value to EBITDA Ratio, Current
Kinder Morgan Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 69,130) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 7,377) |
| Valuation Ratio | |
| EV/EBITDA | 9.37 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 6.67 |
| ConocoPhillips | 6.51 |
| Exxon Mobil Corp. | 6.70 |
| Marathon Petroleum Corp. | 5.13 |
| Occidental Petroleum Corp. | 6.04 |
| Valero Energy Corp. | 4.25 |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | 11.27 |
| EV/EBITDA, Industry | |
| Energy | 12.69 |
Based on: 10-K (reporting date: 2019-12-31).
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
Kinder Morgan Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 83,003) | 75,637) | 77,038) | 89,819) | 78,079) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 7,377) | 6,720) | 6,254) | 5,653) | 5,132) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 11.25 | 11.26 | 12.32 | 15.89 | 15.21 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | 6.39 | — | — | — | — | |
| ConocoPhillips | 4.13 | — | — | — | — | |
| Exxon Mobil Corp. | 6.91 | — | — | — | — | |
| Marathon Petroleum Corp. | 7.23 | — | — | — | — | |
| Occidental Petroleum Corp. | 10.32 | — | — | — | — | |
| Valero Energy Corp. | 6.00 | — | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.54 | — | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Energy | 7.51 | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 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).
3 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 83,003 ÷ 7,377 = 11.25
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. | Kinder Morgan Inc. EV/EBITDA ratio decreased from 2017 to 2018 and from 2018 to 2019. |