Need a little help on this EV/EBITDA calculation for Chesapeake Energy. Not sure if I’m doing this right.

Using yesterday’s closing price and current outstanding shares, I got a diluted equity value of $6.132B. Then, I used the most recent 10-Q to calculate the EV. Does this look right? I appreciate any help.

Yea, but the important thing I’m looking for here is the calculation of the actual enterprise value. With EBITDA I’m just taking op. income and adding back DD&A, impairments and other non-cash charges.

It’s a commodity company. EBITDA and earnings will swing wildly. You should use forward EBITDA when calculating EV/EBITDA for Chesapeake. I think people expect CHK to be above $2B in EBITDA in 2017 with higher commodity prices giving you a more reasonable EV/EBITDA multiple.