Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Schlumberger Ltd., 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).
- Net income (loss) attributable to SLB
- The net income shows a significant turnaround over the five-year period. Starting with a substantial loss of $10,518 million at the end of 2020, the company shifted to profitability in 2021 with a positive net income of $1,881 million. This upward trend continued steadily, reaching $3,441 million in 2022, $4,203 million in 2023, and $4,461 million in 2024, indicating consistent growth in net profitability.
- Earnings before tax (EBT)
- EBT mirrored the pattern observed in net income, beginning with a negative figure of $11,298 million in 2020. An improvement was evident in 2021 as earnings before tax became positive at $2,374 million. The growth trend persisted, with EBT increasing to $4,271 million in 2022, then $5,282 million in 2023, and finally $5,672 million in 2024. This suggests enhanced operational performance and a stronger earnings base before taxation.
- Earnings before interest and tax (EBIT)
- The EBIT data reflects recovery and growth in the company's core operations. Following a loss of $10,735 million in 2020, EBIT improved to $2,913 million in 2021. This value increased substantially in 2022, reaching $4,761 million, and continued to grow to $5,785 million by 2023 and $6,184 million in 2024. The steady increase indicates effective management of operating costs and growing operational profitability.
- Earnings before interest, tax, depreciation and amortization (EBITDA)
- EBITDA shows an upward trajectory from a low base, beginning at a loss of $8,169 million in 2020. A sharp increase is visible in 2021, with EBITDA reaching $5,033 million. This positive trend continued consistently over the subsequent years, rising to $6,908 million in 2022, $8,097 million in 2023, and $8,703 million in 2024. The increasing EBITDA demonstrates improved cash operating performance and operational efficiency over time.
Enterprise Value to EBITDA Ratio, Current
Schlumberger Ltd., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 57,931) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 8,703) |
| Valuation Ratio | |
| EV/EBITDA | 6.66 |
| Benchmarks | |
| EV/EBITDA, Industry | |
| Energy | 6.55 |
Based on: 10-K (reporting date: 2024-12-31).
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
Schlumberger Ltd., historical EV/EBITDA calculation, comparison to benchmarks
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).
- Enterprise Value (EV)
- The enterprise value exhibited a significant upward trend from 2020 to 2022, increasing from approximately $44.7 billion to nearly $89.5 billion. This upward momentum peaked in 2022, followed by a noticeable decline in the subsequent years, dropping to around $66.9 billion by the end of 2024. The peak in 2022 indicates a period of heightened market valuation or asset accumulation, whereas the subsequent decrease may suggest market adjustments or changes in the company's capital structure.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures demonstrate a dramatic recovery and growth trajectory. In 2020, the EBITDA was significantly negative at approximately -$8.2 billion, reflecting a challenging operational period. However, there was a substantial turnaround in 2021 with EBITDA rising to about $5 billion, followed by continued growth to $8.7 billion in 2024. This indicates improved operational efficiency and profitability over the analysis period, highlighting a successful rebound and ongoing strengthening of earnings capacity.
- EV/EBITDA Ratio
- The EV/EBITDA ratio is available from 2021 onwards and shows a clear downward trend, decreasing from 13.35 in 2021 to 7.69 by 2024. This decline suggests an improvement in valuation multiples, implying that the company’s earnings increased at a higher rate relative to its enterprise value. The decreasing ratio indicates enhanced operational performance or a market reassessment of the company's valuation, making the company appear more attractively priced in terms of earnings generation over time.