Stock Analysis on Net

Marathon Petroleum Corp. (NYSE:MPC)

Enterprise Value to EBITDA (EV/EBITDA)

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

Marathon Petroleum Corp., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) attributable to MPC 9,681 14,516 9,738 (9,826) 2,637
Add: Net income attributable to noncontrolling interest 1,491 1,534 1,263 (151) 618
Less: Income from discontinued operations, net of tax 72 8,448 1,205
Add: Income tax expense 2,817 4,491 264 (2,430) 1,074
Earnings before tax (EBT) 13,989 20,469 2,817 (13,612) 4,329
Add: Interest expense, net of interest capitalized 1,265 1,195 1,267 1,333 1,238
Earnings before interest and tax (EBIT) 15,254 21,664 4,084 (12,279) 5,567
Add: Depreciation and amortization 3,307 3,215 3,364 3,375 3,638
Earnings before interest, tax, depreciation and amortization (EBITDA) 18,561 24,879 7,448 (8,904) 9,205

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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 Petroleum Corp. EBITDA increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 94,343
Earnings before interest, tax, depreciation and amortization (EBITDA) 18,561
Valuation Ratio
EV/EBITDA 5.08
Benchmarks
EV/EBITDA, Competitors1
Chevron Corp. 6.41
ConocoPhillips 6.38
Exxon Mobil Corp. 6.38
Occidental Petroleum Corp. 5.84
Pioneer Natural Resources Co. 7.09
Valero Energy Corp. 4.25
EV/EBITDA, Sector
Oil, Gas & Consumable Fuels 6.11
EV/EBITDA, Industry
Energy 6.29

Based on: 10-K (reporting date: 2023-12-31).

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 Petroleum Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 83,564 77,259 63,196 73,795 66,555
Earnings before interest, tax, depreciation and amortization (EBITDA)2 18,561 24,879 7,448 (8,904) 9,205
Valuation Ratio
EV/EBITDA3 4.50 3.11 8.48 7.23
Benchmarks
EV/EBITDA, Competitors4
Chevron Corp. 6.34 4.74 7.18 18.57 6.39
ConocoPhillips 5.64 3.82 6.34 23.12 4.13
Exxon Mobil Corp. 5.81 4.54 7.07 16.97 6.91
Occidental Petroleum Corp. 5.41 3.70 5.30 10.32
Pioneer Natural Resources Co. 6.44 4.16 10.66 22.82 8.69
Valero Energy Corp. 3.64 3.15 10.17 47.76 6.00
EV/EBITDA, Sector
Oil, Gas & Consumable Fuels 5.63 4.19 7.13 39.03 6.59
EV/EBITDA, Industry
Energy 5.81 4.40 7.34 66.20 7.54

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 2023 Calculation
EV/EBITDA = EV ÷ EBITDA
= 83,564 ÷ 18,561 = 4.50

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 Petroleum Corp. EV/EBITDA ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.