Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
United States Steel Corp., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
- Net Earnings (Loss) Attributable to United States Steel Corporation
- There is a notable fluctuation in net earnings over the years. In 2018, net earnings were positive at 1115 million USD. However, the company experienced losses in the subsequent two years, with net losses of 630 million USD in 2019 and further deepening to 1165 million USD in 2020. A strong recovery is observed in 2021, with net earnings surging to 4174 million USD, followed by a decline to 2524 million USD in 2022, though still maintaining a positive result.
- Earnings Before Tax (EBT)
- The EBT trend parallels that of net earnings, indicating consistent changes in profitability before tax. From a positive 812 million USD in 2018, the company moved to losses of 452 million USD in 2019 and 1307 million USD in 2020. In 2021, EBT rebounded significantly to 4344 million USD and decreased to 3259 million USD in 2022, remaining well above the earlier loss periods.
- Earnings Before Interest and Tax (EBIT)
- EBIT shows a similarly volatile pattern. Starting at 980 million USD in 2018, EBIT dropped to a loss of 310 million USD in 2019 and a greater loss of 1027 million USD in 2020. A remarkable recovery occurred in 2021 with EBIT reaching 4657 million USD, followed by a decline in 2022 to 3418 million USD. The positive EBIT values in the last two years suggest improved operational performance compared to the losses in 2019 and 2020.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA figures exhibit the highest volatility among the reported earnings metrics. EBITDA was strong at 1501 million USD in 2018, then sharply declined to 306 million USD in 2019 and went negative to -384 million USD in 2020. The company achieved a substantial turnaround in 2021 with EBITDA soaring to 5448 million USD. In 2022, EBITDA decreased to 4209 million USD but remained significantly higher than the pre-2021 period, reflecting improved cash profitability and operational cash flow generation.
Enterprise Value to EBITDA Ratio, Current
United States Steel Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 6,067) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,209) |
| Valuation Ratio | |
| EV/EBITDA | 1.44 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Freeport-McMoRan Inc. | 7.92 |
| EV/EBITDA, Industry | |
| Materials | 17.36 |
Based on: 10-K (reporting date: 2022-12-31).
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
United States Steel Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 7,375) | 7,641) | 7,326) | 4,388) | 5,352) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,209) | 5,448) | (384) | 306) | 1,501) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 1.75 | 1.40 | — | 14.34 | 3.57 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Freeport-McMoRan Inc. | 7.74 | 7.20 | 15.89 | — | — | |
| EV/EBITDA, Industry | ||||||
| Materials | 14.17 | 13.46 | 17.97 | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 7,375 ÷ 4,209 = 1.75
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows notable fluctuations over the observed periods. It decreased from 5,352 million USD at the end of 2018 to 4,388 million USD at the end of 2019. Subsequently, it rose sharply to 7,326 million USD by the end of 2020, followed by a modest increase to 7,641 million USD in 2021. There was a slight decline in 2022, with the value falling to 7,375 million USD. Overall, the EV exhibits volatility but maintains an upward trend from 2019 onwards.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA experiences significant variation. Initially, there is a drastic reduction from 1,501 million USD in 2018 to 306 million USD in 2019, followed by a transition to negative earnings of -384 million USD in 2020, indicating a loss at the operational level. However, there is a substantial recovery in 2021 with EBITDA reaching 5,448 million USD, though it declines to 4,209 million USD in 2022. The trend reflects a period of severe operational challenges culminating in 2020, succeeded by a strong rebound and stabilization, despite a slight decrease in the last period.
- EV/EBITDA Ratio
- The EV/EBITDA multiple shows variability aligned with the volatility in EBITDA. It increased from 3.57 in 2018 to a markedly higher 14.34 in 2019, indicative of diminished earnings relative to enterprise value. The ratio is unavailable for 2020 due to negative EBITDA, which invalidates the calculation. In 2021, the ratio sharply declines to 1.4, reflecting the substantial recovery in EBITDA against the enterprise value. It slightly increases to 1.75 in 2022, corresponding to the decline in EBITDA while EV remains relatively stable. The ratio suggests valuation underpinned by earnings performance, with a period of high valuation multiples during earnings distress, followed by normalized multiples in recovery.