Stock Analysis on Net

Marathon Petroleum Corp. (NYSE:MPC)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Marathon Petroleum Corp., FCFF 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
Net (income) loss attributable to noncontrolling interests 1,491 1,534 1,263 (151) 618
Net noncash charges 2,785 1,462 (3,548) 10,515 6,060
Changes in operating assets and liabilities, net of effects of businesses acquired 160 (1,193) 931 269 126
Net cash provided by operating activities 14,117 16,319 8,384 807 9,441
Interest paid, net of amounts capitalized, net of tax1 960 827 1,120 1,013 881
Interest capitalized, net of tax2 48 81 66 106 119
Additions to property, plant and equipment (1,890) (2,420) (1,464) (2,787) (5,374)
Free cash flow to the firm (FCFF) 13,235 14,807 8,107 (862) 5,066

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
FCFF Free cash flow to the firm is the cash flow available to the Marathon Petroleum Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Marathon Petroleum Corp. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Interest Paid, Net of Tax

Marathon Petroleum Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR1 20.00% 22.00% 9.00% 18.00% 25.00%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax 1,200 1,060 1,231 1,235 1,174
Less: Interest paid, net of amounts capitalized, tax2 240 233 111 222 294
Interest paid, net of amounts capitalized, net of tax 960 827 1,120 1,013 881
Interest Costs Capitalized, Net of Tax
Interest capitalized, before tax 60 104 73 129 158
Less: Interest capitalized, tax3 12 23 7 23 40
Interest capitalized, net of tax 48 81 66 106 119

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 2023 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 1,200 × 20.00% = 240

3 2023 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= 60 × 20.00% = 12


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 94,343
Free cash flow to the firm (FCFF) 13,235
Valuation Ratio
EV/FCFF 7.13
Benchmarks
EV/FCFF, Competitors1
Chevron Corp. 15.02
ConocoPhillips 17.39
Exxon Mobil Corp. 13.69
Occidental Petroleum Corp. 12.03
Pioneer Natural Resources Co. 17.14
Valero Energy Corp. 7.44
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 12.89
EV/FCFF, Industry
Energy 13.19

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

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 Petroleum Corp., historical EV/FCFF 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
Free cash flow to the firm (FCFF)2 13,235 14,807 8,107 (862) 5,066
Valuation Ratio
EV/FCFF3 6.31 5.22 7.80 13.14
Benchmarks
EV/FCFF, Competitors4
Chevron Corp. 14.85 8.27 13.33 106.63 16.67
ConocoPhillips 15.38 7.43 10.72 92.48 13.21
Exxon Mobil Corp. 12.47 7.84 10.06 44.38
Occidental Petroleum Corp. 11.15 5.95 8.39 25.58 45.65
Pioneer Natural Resources Co. 15.55 6.73 9.41 67.23 173.74
Valero Energy Corp. 6.36 5.39 10.62 9.96
EV/FCFF, Sector
Oil, Gas & Consumable Fuels 11.89 7.29 10.53 331.68 21.78
EV/FCFF, Industry
Energy 12.19 7.75 10.84 194.07 22.00

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/FCFF = EV ÷ FCFF
= 83,564 ÷ 13,235 = 6.31

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