Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Marathon Oil Corp., FCFF 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).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Marathon Oil Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Marathon Oil Corp. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Interest Paid, Net of Tax
Marathon Oil Corp., interest paid, net of tax 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).
2 2021 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 231 × 6.00% = 14
Enterprise Value to FCFF Ratio, Current
Marathon Oil Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 18,099 |
| Free cash flow to the firm (FCFF) | 2,410 |
| Valuation Ratio | |
| EV/FCFF | 7.51 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Chevron Corp. | 13.98 |
| ConocoPhillips | 8.68 |
| Devon Energy Corp. | 11.57 |
| Exxon Mobil Corp. | 10.76 |
| Occidental Petroleum Corp. | 10.58 |
| Pioneer Natural Resources Co. | 8.89 |
| Valero Energy Corp. | 12.09 |
| EV/FCFF, Sector | |
| Oil, Gas & Consumable Fuels | 11.05 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Marathon Oil Corp., historical EV/FCFF 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 | 19,460 | 13,468 | 12,800 | 17,690 | 17,830 | |
| Free cash flow to the firm (FCFF)2 | 2,410 | 378 | 412 | 689 | 78 | |
| Valuation Ratio | ||||||
| EV/FCFF3 | 8.07 | 35.58 | 31.11 | 25.68 | 227.34 | |
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Chevron Corp. | 13.33 | 106.63 | 16.67 | 14.42 | 31.47 | |
| ConocoPhillips | 9.45 | 34.86 | 8.32 | 10.98 | 4.33 | |
| Devon Energy Corp. | 12.21 | 32.62 | 32.46 | 241.38 | 61.96 | |
| Exxon Mobil Corp. | 10.06 | — | 44.38 | 22.20 | 23.79 | |
| Occidental Petroleum Corp. | 8.39 | 25.52 | 45.35 | 19.00 | 37.33 | |
| Pioneer Natural Resources Co. | 9.41 | 67.23 | 173.74 | 683.15 | — | |
| Valero Energy Corp. | 10.62 | — | 9.96 | 13.51 | 9.62 | |
| EV/FCFF, Sector | ||||||
| Oil, Gas & Consumable Fuels | 10.56 | 142.51 | 21.33 | 17.75 | 17.52 | |
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/FCFF = EV ÷ FCFF
= 19,460 ÷ 2,410 = 8.07
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Marathon Oil Corp. EV/FCFF ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |