Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Occidental Petroleum Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
A period of significant financial volatility is observed between 2020 and 2024, characterized by a sharp recovery from deep losses in 2020 to a peak in profitability during 2022, followed by a moderate contraction in the subsequent two years.
- EBITDA Trajectory
- EBITDA experienced a substantial reversal from a negative 6,184 million USD in 2020 to 13,766 million USD in 2021. This upward momentum peaked in 2022 at 22,073 million USD, representing the highest operational cash-flow proxy in the analyzed period. Subsequently, a downward trend occurred, with EBITDA declining to 14,239 million USD in 2023 and further to 12,616 million USD by the end of 2024.
- Operating and Pre-Tax Earnings
- Earnings before interest and tax (EBIT) and Earnings before tax (EBT) followed a trajectory closely aligned with EBITDA. EBIT rose from -14,281 million USD in 2020 to a peak of 15,147 million USD in 2022, before descending to 5,245 million USD in 2024. The proximity of EBT values to EBIT suggests a consistent relationship between operating profit and pre-tax earnings throughout the cycle.
- Net Income Correlation and Profitability Erosion
- Net income exhibits the most acute volatility of all measured metrics. After shifting from a loss of 14,831 million USD in 2020 to a high of 13,304 million USD in 2022, net income declined more sharply than EBITDA in the following years, reaching 3,056 million USD in 2024. The increasing divergence between EBITDA and net income from 2022 to 2024 indicates that depreciation, amortization, interest, and tax obligations have exerted a progressively larger impact on the bottom line relative to core operational earnings.
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Enterprise Value to EBITDA Ratio, Current
Occidental Petroleum Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 74,470) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 12,616) |
| Valuation Ratio | |
| EV/EBITDA | 5.90 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Chevron Corp. | 10.81 |
| ConocoPhillips | 6.77 |
| Exxon Mobil Corp. | 10.32 |
| EV/EBITDA, Sector | |
| Oil, Gas & Consumable Fuels | 8.96 |
| EV/EBITDA, Industry | |
| Energy | 9.01 |
Based on: 10-K (reporting date: 2024-12-31).
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
Occidental Petroleum Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 78,428) | 77,093) | 81,681) | 72,969) | 68,728) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 12,616) | 14,239) | 22,073) | 13,766) | (6,184) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 6.22 | 5.41 | 3.70 | 5.30 | — | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Chevron Corp. | 6.50 | 6.34 | 4.74 | 7.18 | — | |
| ConocoPhillips | 5.91 | 5.64 | 3.82 | 6.34 | — | |
| Exxon Mobil Corp. | 6.88 | 5.81 | 4.54 | 7.07 | — | |
| EV/EBITDA, Sector | ||||||
| Oil, Gas & Consumable Fuels | 6.59 | 5.95 | 4.47 | 6.97 | — | |
| EV/EBITDA, Industry | ||||||
| Energy | 6.66 | 6.18 | 4.75 | 7.24 | — | |
Based on: 10-K (reporting date: 2024-12-31), 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).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 78,428 ÷ 12,616 = 6.22
4 Click competitor name to see calculations.
Analysis of the financial metrics indicates a period of significant volatility in operational earnings contrasted with a more stable trend in enterprise valuation. The transition from negative earnings in 2020 to a peak in 2022 represents a substantial recovery in operational performance, although subsequent years show a contraction in earnings capacity.
- Enterprise Value (EV) Trends
- Enterprise value demonstrated an upward trajectory from 68,728 million USD in 2020 to a peak of 81,681 million USD in 2022. Following this peak, the valuation experienced a moderate correction to 77,093 million USD in 2023 and remained relatively stable, ending 2024 at 78,428 million USD.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization exhibited sharp fluctuations over the five-year period. A substantial deficit of 6,184 million USD in 2020 was followed by a rapid recovery, reaching a peak of 22,073 million USD in 2022. A downward trend emerged thereafter, with EBITDA declining to 14,239 million USD in 2023 and further to 12,616 million USD in 2024.
- EV/EBITDA Ratio Interpretation
- The EV/EBITDA ratio was not applicable in 2020 due to negative earnings. The ratio reached its lowest point of 3.70 in 2022, coinciding with the peak in EBITDA, which indicates the most favorable valuation relative to operating earnings during the observed period. As EBITDA contracted in 2023 and 2024 while enterprise value remained relatively constant, the ratio increased to 5.41 and 6.22, respectively, reflecting an expansion of the valuation multiple relative to current operational cash flow.
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