Stock Analysis on Net
Stock Analysis on Net

Royal Dutch Shell PLC (NYSE:RDSA)

This company has been moved to the archive! The financial data has not been updated since March 12, 2015.

Enterprise Value to EBITDA (EV/EBITDA)

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

Royal Dutch Shell PLC, EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Income attributable to Royal Dutch Shell plc shareholders 14,874 16,371 26,592 30,918 20,127
Add: Net income attributable to noncontrolling interest (144) 155 248 267 347
Add: Income tax expense 13,584 17,066 23,449 24,475 14,870
Earnings before tax (EBT) 28,314 33,592 50,289 55,660 35,344
Add: Interest expense, excluding accretion expense 765 650 894 535 249
Earnings before interest and tax (EBIT) 29,079 34,242 51,183 56,195 35,593
Add: Depreciation, depletion and amortization 24,499 21,509 14,615 13,228 15,595
Earnings before interest, tax, depreciation and amortization (EBITDA) 53,578 55,751 65,798 69,423 51,188

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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. Royal Dutch Shell PLC EBITDA decreased from 2012 to 2013 and from 2013 to 2014.

Enterprise Value to EBITDA Ratio, Current

Royal Dutch Shell PLC, current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 209,386
Earnings before interest, tax, depreciation and amortization (EBITDA) 53,578
Valuation Ratio
EV/EBITDA 3.91
Benchmarks
EV/EBITDA, Competitors1
Chevron Corp. 6.70
ConocoPhillips 6.49
Exxon Mobil Corp. 6.71
Marathon Petroleum Corp. 5.12
Occidental Petroleum Corp. 6.03
Valero Energy Corp. 4.24

Based on: 20-F (reporting date: 2014-12-31).

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

Royal Dutch Shell PLC, historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 209,386 259,612 230,560 249,613 242,298
Earnings before interest, tax, depreciation and amortization (EBITDA)2 53,578 55,751 65,798 69,423 51,188
Valuation Ratio
EV/EBITDA3 3.91 4.66 3.50 3.60 4.73
Benchmarks
EV/EBITDA, Competitors4
Chevron Corp. — — — — —
ConocoPhillips — — — — —
Exxon Mobil Corp. — — — — —
Marathon Petroleum Corp. — — — — —
Occidental Petroleum Corp. — — — — —
Valero Energy Corp. — — — — —

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

1 See details »

2 See details »

3 2014 Calculation
EV/EBITDA = EV ÷ EBITDA
= 209,386 ÷ 53,578 = 3.91

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. Royal Dutch Shell PLC EV/EBITDA ratio increased from 2012 to 2013 but then slightly decreased from 2013 to 2014 not reaching 2012 level.