Enterprise Value to EBITDA (EV/EBITDA)
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Total Asset Turnover since 2005
- Analysis of Revenues
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Marathon Oil Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Net Income (Loss)
- Net income exhibited significant volatility over the five-year period. In 2017, the company reported a substantial loss of 5723 million US dollars. This dramatically improved in 2018 with a net income of 1096 million US dollars, followed by a decline to 480 million in 2019. A return to loss occurred in 2020, with net income falling to -1451 million US dollars. However, in 2021, the company again achieved profitability with net income of 946 million US dollars. Overall, the net income shows a pattern of recovery and setbacks, with profitability regained in the final reported year.
- Earnings Before Tax (EBT)
- EBT followed a trend roughly consistent with net income. The company recorded a loss of 454 million US dollars in 2017, followed by strong positive earnings of 1427 million in 2018. This decreased to 392 million in 2019. A decline was seen again in 2020 with a loss of 1465 million, mirroring the net income loss for the year. In 2021, the EBT recovered to 1004 million US dollars. The fluctuations in EBT reflect operational and market challenges experienced through the period, with a general recovery trend in the later years.
- Earnings Before Interest and Tax (EBIT)
- EBIT exhibited a pattern similar to EBT with notable fluctuations. From a negative EBIT of 77 million in 2017, earnings climbed to 1707 million in 2018, then declined to 672 million in 2019. The year 2020 marked a significant drop to a negative EBIT of 1186 million. Profitability returned in 2021 with EBIT rising to 1261 million US dollars. These variations indicate shifting operational performance and potentially changing costs or revenue bases during the period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA numbers show a generally positive trend but also reveal volatility. EBITDA increased significantly from 2295 million in 2017 to a peak of 4148 million in 2018 before declining to 3069 million in 2019. The year 2020 saw a marked decrease to 1130 million, the lowest since 2017, before rebounding to 3327 million in 2021. Despite yearly fluctuations, positive EBITDA across all periods suggests the underlying cash-generating ability of the company remained intact, though at varying levels.
- Overall Trends and Insights
- The financial metrics analyzed present a company experiencing considerable fluctuations in profitability and earnings over the five-year span. Notably, 2017 and 2020 were challenging years with negative net income, EBT, and EBIT, pointing to adverse conditions or operational difficulties. The improvements in 2018 and 2021 indicate a capacity for recovery. While net income and EBIT were negative in select years, EBITDA remained consistently positive, demonstrating core operational cash flow resilience. The data suggest sensitivity to external factors possibly impacting profitability and highlight the importance of operational efficiency for sustained earnings.
Enterprise Value to EBITDA Ratio, Current
Marathon Oil Corp., 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 | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | |
| EV/EBITDA, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2021-12-31).
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
Marathon Oil Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| EV/EBITDA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| EV/EBITDA, Industry | ||||||
| Energy | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value showed a fluctuating trend over the five-year period. Starting at $17,830 million in 2017, it slightly decreased in 2018 to $17,690 million. A notable decline was observed in 2019, reaching the lowest point of $12,800 million. Subsequently, there was a moderate increase in 2020 to $13,468 million, followed by a significant rise in 2021 to $19,460 million, surpassing the initial value from 2017.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA experienced considerable volatility over the period under review. It increased substantially from $2,295 million in 2017 to a peak of $4,148 million in 2018. However, this was followed by a decline in 2019 to $3,069 million and a sharp decrease in 2020 to $1,130 million. In 2021, EBITDA rebounded significantly to $3,327 million, indicating partial recovery but still below the peak achieved in 2018.
- EV/EBITDA Ratio
- The EV/EBITDA ratio displayed an inverse relationship to EBITDA trends between 2017 and 2020. The ratio decreased from 7.77 in 2017 to 4.26 in 2018 and further to 4.17 in 2019, suggesting increased valuation efficiency relative to earnings. However, there was a marked increase to 11.92 in 2020, indicating reduced valuation relative to EBITDA due to the significant earnings downturn in that year. The ratio improved in 2021 to 5.85, correlative with the rebound in EBITDA and increase in enterprise value.