Stock Analysis on Net

Marathon Oil Corp. (NYSE:MRO)

This company has been moved to the archive! The financial data has not been updated since August 4, 2022.

Enterprise Value to EBITDA (EV/EBITDA)

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

Marathon Oil Corp., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net income (loss) 946 (1,451) 480 1,096 (5,723)
Less: Loss from discontinued operations (4,893)
Add: Income tax expense 58 (14) (88) 331 376
Earnings before tax (EBT) 1,004 (1,465) 392 1,427 (454)
Add: Interest expense 257 279 280 280 377
Earnings before interest and tax (EBIT) 1,261 (1,186) 672 1,707 (77)
Add: Depreciation, depletion and amortization 2,066 2,316 2,397 2,441 2,372
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,327 1,130 3,069 4,148 2,295

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).

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. Marathon Oil Corp. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Enterprise Value to EBITDA Ratio, Current

Marathon Oil Corp., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 18,012
Earnings before interest, tax, depreciation and amortization (EBITDA) 3,327
Valuation Ratio
EV/EBITDA 5.41
Benchmarks
EV/EBITDA, Competitors1
Chevron Corp. 6.37
ConocoPhillips 6.34
Exxon Mobil Corp. 6.32
Marathon Petroleum Corp. 5.09
Occidental Petroleum Corp. 5.79
Pioneer Natural Resources Co. 7.01
Valero Energy Corp. 4.24
EV/EBITDA, Sector
Oil, Gas & Consumable Fuels 8.90
EV/EBITDA, Industry
Energy 9.19

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

Microsoft Excel
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 19,460 13,468 12,800 17,690 17,830
Earnings before interest, tax, depreciation and amortization (EBITDA)2 3,327 1,130 3,069 4,148 2,295
Valuation Ratio
EV/EBITDA3 5.85 11.92 4.17 4.26 7.77
Benchmarks
EV/EBITDA, Competitors4
Chevron Corp. 7.18 18.57 6.39
ConocoPhillips 6.34 23.12 4.13
Exxon Mobil Corp. 7.07 16.97 6.91
Marathon Petroleum Corp. 8.48 7.23
Occidental Petroleum Corp. 5.30 10.32
Pioneer Natural Resources Co. 10.66 22.82 8.69
Valero Energy Corp. 10.17 47.76 6.00
EV/EBITDA, Sector
Oil, Gas & Consumable Fuels 7.13 39.03 6.59
EV/EBITDA, Industry
Energy 7.34 66.20 7.54

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).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 19,460 ÷ 3,327 = 5.85

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. Marathon Oil Corp. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.